Lingrid | CADJPY Potential Downside Move After Breakout

The price perfectly fulfilled my previous idea. CADJPY is facing continuous rejection from the descending trendline, maintaining its position within the downward channel. Price is struggling to hold above the 105.00 region, showing signs of distribution after a fake breakout and lower high formation. A sustained breakdown below 105.00 would confirm the bearish continuation targeting the 104.00–104.50 zone.

📉 Key Levels

• Sell zone: 105.40–105.50
  
• Buy trigger: breakout above 105.60 and retest
  
• Target: 104.500
  
• Sell trigger: confirmed break and close below 105.00
  

⚠️ Risks

• False breakdown could lead to sharp recovery toward 106.20
  
• Oversold conditions may slow downside near 104.50
  
• Range re-accumulation above 105.00 could trap short-sellers
  
• Thin liquidity around 104.20 might cause price spikes
  

If this idea resonates with you or you have your own opinion, traders, hit the comments. I’m excited to read your thoughts!