CADJPY Short#CADJPY the lower highs indicate that this pair is going through a down trend. The EMA is a major confluence with regards to downside movement as the 7 EMA below the 50 EMA indicate that the market is in a long term downtrend, this is followed by the 3 EMA being below the 7 EMA which indicates that the market is in a short term downtrend. The short long term down trend followed by the short term down trend means that the probability of downside movement increases!
This pair has also gone through a small phase of trending sideways (ranging market). Now this pair is approaching key levels as it has broken the support zone and has broken out of trending sideways. The daily candle being an 'up day' shows that price has had a chance to pull back, giving traders a great chance to get in the downside movement. A break of 79.2 is the target.
