CADJPY Chart Technical Outlook corrects lower after a completed 5-wave count
The daily chart highlights the completion of a bullish five-wave count at the 261.8% extension level of 111.06. We posted a bearish outside bar on September 29. This formation is often seen at the top of a trend and the start of a new downward bias.
The recovery from the 107.56 swing low has been substantial.
With USD/JPY trading close to the rumored Bank of Japan intervention level of 150.00, we must express caution for bulls. Prime resistance is located at 110.40. This is the 78.6% pullback level and an area that found previous selling.