Third time's the charm for sellers?
The pair is down 0.4% on the day to fresh lows in a month, falling to 85.70 and the drop back below the 200-day moving average (blue line) now calls into question key daily support from the April low @ 85.42.
However, the bounce was not all too significant with sellers quickly resuming the downside pressure this month and continuing the momentum to today.
The more dour risk tones in the market isn't helping, with oil also pressured down by 1.4% to $70.99 at the moment - weighing on loonie sentiment.
Given the risks surrounding China, this could be a real make or break moment for risk trades in general and CAD/JPY will be playing to the same tune.
If contagion risks from China reverberates much wider and deeper, the technical drop may yet exacerbate any downside potential in CAD/JPY to test the August low @ 84.67 next.
The scary part for bulls is that if you really want to look at it, the chart has been forming a series of lower highs, lower lows since the start of 2H 2021: