CAD/JPY Confirming a Double Bottom

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CAD/JPY Confirming a Double Bottom

CAD/JPY is in some interesting price action. In the near-term, the direction is unclear, but this week, it formed a double bottom and is now confirming it. Let’s take a look at the charts for some¬†technical assessment.

After falling from 96.40 last week to 94.15 this week, price made a double bottom. After the double bottom, we saw a pullback that respected the double bottom. Price is also holding above the moving averages and the RSI has held above 40 after tagging 70. Basically the bullish bias and momentum is building and CAD/JPY looks poised to break higher above this week’s high around 95.88.

Above 95.90, there is not much room before CAD/JPY will be challenged by a cluster of resistance factors around 97.00 as seen in the daily chart. If price stalls here and the daily RSI also stalls around 60, we should expect resistance and a bearish attempt towards the lows just above 94.00.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.