The correction that started last week on CADJPY ended yesterday. Increases were caused by support in the area of 77.70 – 77.80, which failed to be broken by the bears for 2 days. The nearest resistance toward which the CADJPY is heading is the level of 78.85. Only breaking it will confirm that upward trend returned and we can expect next local high. On the other hand, may appear weakness to overcome the resistance level at 78.85 and support in the area of 78.70 – 77.80. This could start a period of consolidation between these levels.
In the longer term CADJPY is moving in a downward trend. However, in October there was a upward breakout in the descending trend line, and from that moment there were indications that the trend is reversing on CADJPY. At the last chart (for D1) I pointed out two possible trend lines (orange) and as long as the price remains above them it gives reason for optimism for bulls.
