CAD/JPY 4H Chart: Descending Triangle

This year the Canadian Dollar has been losing value relative to the Japanese Yen, which has eventually led to formation of the descending triangle, being that CAD/JPY remains unable to penetrate the support at 92, which is reinforced by the daily S1 level. However, given that most of the four-hour and daily technical indicators are bearish right now, the break-out to the downside is much more likely.

Meanwhile, this idea is also shared by 61% of the SWFX market participants, who at the moment are holding short with respect to the loonie positions. Still, for this to happen, the downward-sloping resistance line at 92.46 should prevent development of any rallies.