The CAD/JPY currency pair quotations set the low for a downward trend at around 79.55 in early June. Since then, the exchange rate has started to change direction and at the beginning of this week a higher high was set.
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As can be seen in the daily chart below, the price started to rebound after the low had been set, and as a result the buyers managed to beat the 81.00, which again acted as a support. The rebound from the support in the second half of June directed the quotations to a key resistance at 82.58, where the peak of the last downward impulse was located.
The opening of this week took place above the peak mentioned above, which calls into question the earlier downward trend. However, a successful breakthrough at 82.58 would only be confirmed by a closure above the zone visible below.
In the above scenario, the key resistance is around 84.00, but on the way to that level, buyers would still have to face the local level of defence at 83.24.
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