CoryMitchell-CMT

CADJPY Nearing Major Breakout Level

Long
OANDA:CADJPY   Canadian Dollar / Japanese Yen
CADJPY ...In the short-term, a rise above 83.65 would signal a continued advance to the top of the current rising trend channel near 85.

The 85 region also aligns with a major price top from March.

If the price can successfully break above 83.65, a complex inverse head and shoulders 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 inverse head and shoulders 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 triangle pattern . 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.
Cory Mitchell, CMT
Stock and forex trading insights at https://tradethatswing.com/

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