CADJPY has been down-trending for a while now and looks set to continue lower as price continues to form lower lows and lower highs.
The key when looking for the next phase to take place is the size of the retracement. Typically what you notice when a market continues lower, is the size of the candlesticks in the retracement phase.
If the candles are large it shows a potential reversal is occurring rather than a continuation. In this case with CADJPY you can see the retracement candle are small in size showing buyers aren't really forcing prices higher.
If price action forms we can look for further downside.
The key when looking for the next phase to take place is the size of the retracement. Typically what you notice when a market continues lower, is the size of the candlesticks in the retracement phase.
If the candles are large it shows a potential reversal is occurring rather than a continuation. In this case with CADJPY you can see the retracement candle are small in size showing buyers aren't really forcing prices higher.
If price action forms we can look for further downside.