The CADJPY formed a solid Bearish Engulfing Bar (BEEB) on the daily chart last week. Once price broke the low of this BEEB price sold of heavily.
Price has now reached the near term support area. Traders who took this setup have now had a chance to take profit or at the monimum move to protect their capital.
If this support area holds we could see price move back higher into the near term resistance that the BEEB is rejecting. If price decides to go the other way and move lower again, support comes in around 78.30.
CADJPY DAILY CHART – 26 SEP 2012
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