Lingrid | CADJPY Potential Short at the Confluence Zone

CADJPY has recently rebounded from the support zone near 106.00 and surged back toward the resistance structure. The chart shows a breakout from a triangle pattern that shifted momentum upward, but the confluence of trendline and channel border signals a possible rejection at resistance. As long as price remains capped below 108.30–108.50, downside retracement risk increases. A rejection here could send the pair back toward the 107.00 support area, aligning with the broader consolidation phase.

📉 Key Levels:

• Sell trigger: Rejection at 108.30 resistance zone
  
• Sell zone: 108.20–108.50 region
  
• Target: 107.05 support
  
• Invalidation: Break and close above 108.95
  

💡 Risks:

• Unexpected strength in CAD fundamentals could fuel a bullish breakout.
  
• JPY weakness from BOJ policy stance could limit downside.
  
• Broader risk-on sentiment in global markets may push price higher despite technical rejection.
  

If this idea resonates with you or you have your own opinion, traders, hit the comments. I’m excited to read your thoughts!