Looking on daily chart of CADJPY we can distinguish a strong growth impulse, which began after presidential election in United States. After reaching a high at 88.90, pair began to declines but there are much less aggressive, indicating that they were merely a correction of earlier growth.
The mentioned correction has pushed the pair to support near 80.65.and recently price moved in consolidation between this level and the resistance at 83.41.
On June 16th the consolidation was broken thru the top and the previous resistance at 83.41 was tested as a support. During this test the price action formed a bulish engulfing followed by inside bar. Break out of the formation confirmed possibility of continuation of growth and already third day on the pair CADJPY is noted dynamic increase.
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Bearing in mind the above, we may presume that correction of the previously described impulse has come to an end. Thus another important target for bulls can be a wide area between 87.72 – 88.64, which contains highs formed in December 2016 to February this year.
