CAD/JPY has decreased a little in the short term after the Canadian retail sales data. The Retail Sales and Core Retail Sales have come in worse than expected yesterday. Also, technically, the pair was somehow expected to slip lower after its amazing rally.
The pair could move sideways in the short term before resuming its growth. It could test and retest the immediate support levels before jumping higher.
Technical Analysis!
CAD/JPY is located above the R1 (89.958) and it has developed a minor Falling Wedge pattern. Breaking above from this pattern could signal that the pair will resume its growth.
Technically, it has found resistance at the downtrend line, so only an upside breakout above it could really confirm more gains. Personally, I believe that the bias remains bullish as long as it stays above the R1.
A new higher high, a bullish closure above 90.407 could announce a potential growth towards the former higher highs.
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