CAD/JPY is in a major uptrend but after four days of declines, the question is whether the correction continues or if it has run its course.
CAD/JPY broke last week’s low following the BOC decision and will likely close near the lows of the day.
Next on the chart is the January low 87.99.
The fear is that CAD/JPY could retrace all the way down to 85.00 which is the March high and the 50% retracement. Even at that level, the pair would still be in a comfortable uptrend.
Waiting for 85.00 risks missing the next leg higher. In the shorter-term, buying a dip to 88.30 with a stop below 88.00 might be a low risk way to tap into a powerful uptrend.
