Hello traders! Today we’ll look at the CAD/JPY pair and a potential trend reversal. It is far too early to say that the trend will reverse, although at least some correctional move to the upside could happen.
The daily chart above shows that the price did reach the bottom of the descending channel, which has provided good support. CAD/JPY produced a double bottom and now attempting to print a higher high.
On the 4-hour chart you can see the expected W-shape reversal, but for this price must break the resistance at 78.23 and of course the 200 Exponential Moving Average.
But on the 1-hour chart, we can see that the descending channel has been broken as well as 200 EMA. Now EMA is acting as the support and CAD/JPY is holding it very well. If the price won’t break below the 76.27 level, further growth should be expected towards one of the Fibonacci resistance levels.
Bias: Bullish while above 76.27
Potential Support Zone: 76.27 – 76.00
Potential Targets: 80.58,82.41
Have a profitable trading!