© Dukascopy Bank SA
The rally seen early March has proven to be unsustainable. After CAD/JPY topped out just above 94, it came under strong and persistent selling pressure, as a result of which the currency pair has already given up two figures and may still decline even more.
The downside risks are especially explicit in the near-term, being that the loonie is presently trading just beneath the falling resistance trend-line, reinforced by the weekly PP level. The exchange rate therefore is expected to erase the gains made by its latest bullish correction and eventually decline down to 91.80, the lower boundary of the bearish channel.
© Dukascopy Bank SA