CADJPY arrived on Tuesday at the key resistance level at 87.00, which also acted as support in November last year. There as you can see on the daily chart below, the supply side has entered the game and pushed the pair to the support provided by the trend line running from this year’s lows.
A little lower is the horizontal support zone at 84.00/30. Therefore, if the pair is to move further in an upward trend, buyers should re-enter the area created by the trend line and horizontal support.The objective at the above scenario would be resistance at 87.00, while after overcoming it, the way to at least a 200-pips increase towards 89.00 will be opened. Alternatively, effective breaking of the trend line and horizontal support at 84.00 may result in a deeper slump to the key defense level at 82.00.

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