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The CAD/JPY pair registered a strong downside movement and now it could develop a larger drop after passing below the uptrend line. From the technical point of view, the uptrend line represented a downside obstacle.
Dropping below it signaled that the upside movement could be over and that the price could develop a new downside movement. As long as it stays under the downtrend line, the CAD/JPY pair could approach and reach new lows.
The currency pair is expected to drop deeper as long as it stays under the downtrend line and after falling below today's low of 97.69.
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