CADJPY reversing from major resistance, potential for a big drop

CADJPY is reversing nicely from our major resistance level at 82.73 (Fibonacci retracement, Fibonacci extension, horizontal overlap resistance, bearish divergence) and a strong drop could occur from here. We’re seeing intermediate support at 82.40 (horizontal overlap support, Fibonacci retracement) which needs to be broken to trigger a bigger drop down to major support at 81.33 (Fibonacci retracement, Fibonacci extension, horizontal overlap support).

Stochastic (34,5,3) is seeing major resistance below 97% where a corresponding reaction could occur. We can also see bearish divergence vs price signalling that a reversal is impending.

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