CAD/JPY 1H Chart: Ascending channel prevails
The Canadian Dollar has been appreciating in a channel up against the Yen since mid-December. Along the way, the pair breach the prevailing three-month descending channel.
Meanwhile, it has reversed near the dotted line on several occasions within the aforementioned short-term pattern. In case the Loonie fails to breach this line today, a breakout south is likely to occur. In addition, technical indicators show that a surge should not occur within the following week, thus confirming the gradual strengthening of the bearish scenario.
In this case, the pair should be sent towards the 200-hour SMA circa 89.55 early next week and maybe even further south down to the monthly PP at 89.90.
Meanwhile, it has reversed near the dotted line on several occasions within the aforementioned short-term pattern. In case the Loonie fails to breach this line today, a breakout south is likely to occur. In addition, technical indicators show that a surge should not occur within the following week, thus confirming the gradual strengthening of the bearish scenario.
In this case, the pair should be sent towards the 200-hour SMA circa 89.55 early next week and maybe even further south down to the monthly PP at 89.90.