CADJPY analysis for a Sell!!!!Here’s a sell-side analysis for CAD/JPY on the 2H chart based on your updated screenshot:
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Pair: CAD/JPY
Timeframe: 2H
Current Price: ~104.656
Market Bias: Short-term bearish shift from previous bullish trend
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Sell Analysis Overview:
1. Bearish Structure Forming Below 105.300–105.600
• Price recently broke below a major support zone (~105.300–105.600), which is now turning into a resistance zone.
• This rejection aligns with the concept of structure flipping — previous support now acting as resistance.
• The marked “Sell Structure Forming Below” zone highlights this key area for short positions on pullbacks.
2. Multiple Rejections at 105.866
• There are clear lower highs forming, with repeated rejections around 105.866 (circled).
• Each attempt to push higher has failed, showing strong bearish pressure and exhaustion from buyers.
3. Breakdown of Key Moving Averages
• Price has closed below both the 50 EMA and 100 EMA, which are beginning to curl downward — a common signal of a trend reversal.
• Momentum has shifted, and sellers are currently in control.
4. Liquidity Grab + Breakdown
• After a false breakout to the upside, price grabbed liquidity around 105.866 and quickly reversed.
• This aligns with smart money behavior: sweeping highs before dropping — a classic bearish trap.
5. Short-Term Target Zone
• The current bearish move has a clear downside target in the 103.600–103.800 zone, which is marked as an “Area of Liquidity”.
• If this zone breaks cleanly, extended targets sit around 101.800–101.400, where fresh demand and buy structure are likely to form.
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Sell Plan & Risk Management:
• Entry Idea: Wait for a pullback into the 105.300–105.600 zone to look for bearish confirmation (e.g., bearish engulfing, rejection wick).
• Stop Loss: Above 105.866 (invalidates structure)
• Take Profit Levels:
• TP1: 103.600 (liquidity zone)
• TP2: 101.800 (demand zone)
• TP3: 101.400 (long-term structure support)
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Final Thoughts:
CAD/JPY is now showing early signs of a bearish trend reversal after a clean breakdown of structure and liquidity sweep at highs. As long as the price remains below 105.600, the bias remains bearish. A bounce from 104.500 could temporarily delay the drop, but deeper downside is likely if that level gives way.
