CAD/JPY 1H Chart: Channel Up
- The Canadian Dollar is recovering against the Japanese Yen in a short-term ascending channel that formed in the result of a change of the one month long downtrend.
- At the moment, the pattern consists from two reaction lows and only one reaction high.
- Since there will be no significant macroeconomic data releases in the upcoming two days, the currency pair has a potential to surge to the weekly R1 located at the 87.43 level.
- On the other hand, the fact the pair has, practically, stuck for a day at the 200-hour SMA near 86.77 suggests that the channel might not sustain for long.
- This assumption is supported by the general market sentiment, which is 55% bearish.
- But in the meantime, a summary of various technical indicators continue to send a strong buy signal.
