As chart W1 below shows the CADJPY for five weeks has been growing rapidly and was able to make up the loss from nearly half-year period.

On the wave of increasing oil and a weak yen current week started with gains and the price is moving towards the key resistance level at 88.80 which in the past also acted as support.

CADJPY D1
CADJPY D1

We can therefore expect rebound from this level, but while looking at the dynamics of the bullish impulse speculation on declines seems to be a bad idea.

Instead, you should wait for a correction or effective breaking of resistance level and its re-test. Correction can be stopped by the upward trend line or 20-period SMA which in this trend is a dynamic support.

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