CAD/JPY Divergence Hinting Possible Rejection From POC Zone
The CAD/JPY has formed a bearish divergence with price preparing for a possible bearish rejection. Bearish divergence happens when price makes a higher high while the oscillator makes a lower high.
Price is currently approaching historical order block clusters, 83.74-84 zone in confluence with M L3, W H4 and D L5 area. Targets are 82.81 [D L5 // 0/8 // Historical Lows from February] and 82.42 [-2/8 // Last Swing Low].
Have in mind that price needs to stay below 84.37 for divergence to remain stable.
A move below 84.30 would signal additional bearish strength and an extended target of 82.00 area, M L5
The analysis has been done with the CAMMACD.MTF template.
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