Yesterday afternoon there were strong upswings that broke the previous high on CAD/JPY. Vicinity of 89.75 should now serve as a support in case of a pull back. The breakdown confirms the trend that has been taking place since 11th of August, but also marks the end of a correction in a broader upward trend that began in June.
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The weekly chart shows that this is not just a breaking of the previous high but above all a broader, more important resistance zone that has been respected for about 2 years. The dynamics of the breakout is a sign of possible growth, and the closest target appears to be the resistance set by highs from end of 2015 – area around 93.20, to which the price should head in the long run.
