A couple of weeks ago we were looking at a double top pattern on the daily chart. After breaking the neckline at 86.000 and confirming the pattern, CAD/JPY reversed and rallied to 87.970 last week threatening to invalidate the double top.
Unless 88.800 is cleared, the double top pattern is still valid. For this week, CAD/JPY is showing a bearish flag on 1h chart, as you can see on the chart above. The RSI turned bearish also after breaking 40 to downside and we think, at least for short term, last week top at 87.970 will be a new resistance to consider.
The bearish flag projection targets 86.440 and we expect this level to be hit within the next 48 hours.
Stop Loss: 87.650
Time frame: 48 hours