Hi Traders! CADJPY technical analysis and short term forecast is here. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting, useful tips and hacks about the MT4 platform could be found here. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club Spoiler alert – free memberships are available! Let’s start our analysis from the highest timeframe which will be the daily chart here.

CADJPY D1(Daily) Chart Analysis – Psychological Level, Multiple False Breaks, Bearish Divergences, RSI Indicator, Parabolic Sar

On the daily chart, the price which was moving higher reached the psychological level 108.00, respected it and bounced lower from this zone. Also, we have multiple false breaks with bearish divergences that has formed between the first high that has formed at 100.184 and the second high that has formed at 107.640 based on the MACD indicator which we may consider as evidence of bearish pressure. In addition to this, we also have this bearish divergence on the RSI indicator as well, which we may consider as yet another evidence of bearish pressure. Also, currently there are no signs opposing this short term bearish view and also, based on the Parabolic Sar we could see that the dots are above the price, which we may consider as yet another evidence of bearish pressure. So everything looks good here for the bears and basically I expect short term bearish moves to happen here. We may now move down to lower timeframe and see if we can find evidences supporting this short term bearish view.

CADJPY H1(1 Hour) Chart Analysis – Bearish Trend Pattern, Bearish Hidden Divergence, Bearish Divergence, Two Strong Resistance Zones

On the H1 chart, we could see that the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows we may consider this as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently, it looks like the correction that we were looking for is happening. In addition to this, we had a bearish hidden divergence that has formed between the first high that has formed at 107.056 and the second high that has formed at 106.483 based on the MACD indicator, followed by a bearish regular divergence between the first high that has formed at 106.483 and the second high that has formed at 106.626 based on the MACD indicator, we may consider this as other evidences of bearish pressure. Also, we had two strong support zones and the price which was moving lower has broken below these zones and holding below them. We may consider this as yet another evidence of bearish pressure. Currently these two strong support zones are acting as two strong resistance zones for us. Until both these resistance zones hold my short term view remains bearish here and I expect the price to move lower further.

Technical Analysis & Forecast Summary

CADJPY D1(Daily) Chart Analysis 

• Psychological Level, Multiple False Breaks, Bearish Divergences, RSI Indicator, Parabolic Sar

CADJPY H1(1 Hour) Chart Analysis 

• Bearish Trend Pattern, Bearish Hidden Divergence, Bearish Divergence, Two Strong Resistance Zones

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