Technical analysis
The price is beneath MA(50)
The wide-open Bollinger Bands predict high volatility and point to a downtrend
The RSI is below 50, also indicating a downtrend.
What the possible outcomes are
CADJPY fell to 89.033. The pair is bearish in the midterm.
In the most likely scenario, we could see a downwards correction towards the first support level of 88.774.
If the pair falls below the first support level, we can expect a further decrease to the second support level of 88.514.
Contrarily, the bulls may gain strength, and the price may rise to the 89.033 resistance level. A breakout from that level can push the price higher towards 89.359.
The current increased volatility may lead the prices either way in the upcoming trading sessions until the market settles in a particular direction.
Key levels
Support 88.774, 88.514
Resistance 89.033, 89.359
