The CAD/JPY on Friday closed with a bearish pin bar rejecting the both technical and psychological level of 77.00 and the 61.8% Fibonacci retracement level from its most recent down swing.
The chart below shows the strength of the 77.00 area. It’s clear to see it has showing a strong relevance in this market in the past. We can see below Friday’s bearish pin bar fiercely rejecting this level.
The pin is not only rejecting the 77 but also a 61.8% Fibonacci retracement from its most recent down swing. The 61.8% sits just 28 pips above our technical level of 77 further strengthening upper resistance. It’s wise to take note of how the bearish pin bar touches the 61.8 almost perfectly.
With the charts showing strong upper resistance being supported by bearish price action we will be looking for shorting opportunities in the coming week with initial targets in mind at the 75.00 area which is the next obvious support.
