Potential Short Opportunity for CADJPY

6 May 2020

Personally, i think this is a risky trade due to the fact that we are nearing the all time lows for this pair. While there may be potential for further decline, we might be caught in a strong rebound after opening the short position. Nonetheless, i will trade according to how the price develops. There is a potential short opportunity for this pair because it is in descending triangle formation. The pair has been trending downwards showing more downward momentum. I will open a short position (smaller than usual lot size) after a breakout and pullback of the identified support area.