The 85 region also aligns with a major price top from March.
If the price can successfully break above 83.65, a complex will also be complete. The pattern is roughly 465 pips in height, which can be added to the breakout point to provide an estimated longer-term target of 88.30.
Another interpretation of the pattern is that the breakout of the pattern occurred on the rise above 82 in October. This interpretation provides another price target of 86.2.
A breakout higher in the pair is likely if the CAD continues to strengthen in light of rising crude oil prices. The Canadian dollar index is near a breakout of a . A breakout in the CAD/JPY would help fuel the breakout higher in the index, or vice versa.
Disclosure: long based on an unrelated strategy.
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