Upswings could not manage to hold resistance at 84.578, and then tested one more resistance at 21DMA to drop below.
As a result, we've seen back-to-back long legged dojis at 84.532 and 84.535 levels respectively.
For now, the current prices have slid well below DMAs after prolonging whipsaws through resistance at 84.578 levels from last couple days & on the verge of plunging towards southward targets.
We could now foresee further continued weakness in CADJPY when we consider the intermediate and long term trend of this pair.
RSI on daily has convincingly been converging with price declines near 40 levels (Currently, RSI trending below 40 levels).
But slow stochastic is stating indecisiveness on daily but bearish bias on monthly plotting as we observed no clear traces of %K crossover at 20 levels that would mean that bears are still active in major downtrend to generate their effects at this point of time.
Bearish appearances as it has failed to even extend upto minor resistance at 86.939 levels (see for the price behaviour at that level in the recent history, that is where it has been sensing stiff resistance from last couple of months).
The leading indicators on monthly terms are indicative of strong momentum in price dips that signals strength in major downtrend.
The price on monthly drop below 86.939 and 84.348 decisively has been serving strong bear trend with robust volumes.
Most notably, 21EMA has crossed over 7EMA, hence, trend is likely to persist. When 21EMA crossover a “Shooting star” pattern forms at intermediate rallies.
MACD on both daily and monthly terms suggests bear trend continuation.
Trading tips:
Pondering over intraday bearish sentiments, we recommend on pure speculation grounds buying one touch binary puts in order to extract maximum leverage for extended profitability, for targets at 83.897 levels. But in medium terms we could even foresee spot targets at 82.669 levels or below.
One can give leveraging touch to your returns expectation if underlying pair keeps dipping by employing At-The-Money binary delta puts. But do remember these are exclusively for speculative basis.
The material has been provided by InstaForex Company – www.instaforex.com