CAD/JPY - Bearish Forecast
Price has been in a bullish trending channel for quite a while. However, recently, it has been broken with the formation of a drop-base-drop supply. BUT, you can see that price has broken that supply and is currently consolidating back in the channel. I am expecting this area to later on “absorb” this zone and create another supply. I am also expecting for price to retest the upward trend line that lines up with another supply to melt for a range of 200+ pips. If price does reach entry and drives down towards the broken supply, expect heavy consolidation as price struggles to break the area but once it does, it will have enough power to drive down. Probably safe to close out some positions once it reaches broken supply and put the remaining positions at breakeven because this (Decision Point / Broken Supply) is still a critical area that is the equivalent to pulling the trigger to a loaded gun.
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