As a result of recent political events (US breaks the nuclear agreement with Iran pushing the price of OIL), the Canadian currency is strengthening. This is perfectly evident in the example of the CAD/JPY pair, where after almost a monthly correction, the price in two days has returned to the maximum of the trend. The dynamics indicate the potential breaking out of the wider resistance zone. If this happens, the next and at the same time the nearest target of the demand will be the low 86.80 from the end of November last year.
The weekly chart indicates that in recent years the demand side has had a slight advantage. In a broader perspective, the main resistance is the area 91.00 – 91.50, that is last year’s maximum, and at the same time the broader resistance zone, respected over the last years.
