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.
Previous Post by Author: EUR/AUD Testing Channel Support with Double Bottom