Pair CADJPY has been moving in a consolidation for three weeks. Today, for the third time in a row the market is in the vicinity of its lower limit. Taking this fact into account and taking into account the dynamics of today’s downturns it is likely that in near future we will be able to overcome this support.
Looking at the daily chart we see that this level in the past was an important support and after breaking a resistance. However, now it is only the first re-test since its defeat in November last year. It is also worth noting that this support is located in the area of 50% of the Fibonacci correction from earlier increases.
Defeating this zone could open the way to falling even near the level of 75.80, although the first demand response would be expected to be in the area of 61.8% of the Fibonacci correction.
