CADJPY fell off the cliff after the little bearish pin bar candlestick pattern that we covered yesterday. That bearish pin bar was formed at the 98.10 resistance level and at the time it formed, the Stochastic indicator and Commodity Channel Index (CCI) where in the overbought area which increases the odds of selling that bearish pin bar candlestick pattern. That little bearish pin bar candlestick alone has lead to a 130 pip drop in the price. After the drop, we could see the price gradually climb to the 97.50 resistance level and once again the Stochastic indicator and CCI are showing the price is overbought. The Average True Range (ATR) is currently showing the volatility is low. With all that being said, we could potentially have great selling opportunities in today's London session.
