Is there a technical pattern to eye in CAD/JPY?
CAD/JPY has risen to 82.50 but met the resistance of the 50-day MA. The price action seen on the daily and weekly chart since the middle of July is so far corresponding to a bearish harmonic "Butterfly" pattern.
The completion of the pattern implies the advance at least to the 84.00 area before the reversal to the downside. The recent advance above the September high, the 200-day MA in the 82.05 area as well as this year's resistance line is in line with this scenario.
In the near term, consolidation may take place.
The pattern will be valid as long as CAD/JPY is trading above 81.30 (100-day
MA). The bullish scenario will get the ultimate confirmation on the break above
82.50. The first bullish target will be at 83.25 (July highs), while the next
target will lie at 84.00.
This post is written and submitted by FBS Markets for informational purposes only. In no way shall it be interpreted or construed to create any warranties of any kind, including an offer to buy or sell any currencies or other instruments.
The views and ideas shared in this article are
deemed reliable and based on the most up-to-date and trustworthy sources.
However, the company does not take any responsibility for accuracy and
completeness of the information, and the views expressed in the article may be
subject to change without prior notice.
