In my opinion we shouldn’t speculate in Christmas- New Year’s Eve time, or only on small time frames. It is worth to look for trading positions for new year though. One of them can happen on CADJPY. Let’s take a look at weekly chart, we can see breaking of the trend line and key support at 88.70, and also last low which is 87.37. This setup is favouring sellers with target at least at next support 85.00. We look for opportunity to open short position.
Daily chart confirms bearish trend with strong dynamics. Price decrease below last low, so this level can be a strong resistance right now.
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We wait for correction, which probably just started. We can see some similarities looking at previous corrections. It seems like we should be interested in resistance area 87.7-80.0. In this area there is also range of correction before. Bear signal in this area should be used to join the trend because there is still a lot of place for further decreases.
