Is it time for correction in downward movement? After almost 2 weeks of continuous declines CADJPY has reached key support. At 82.20 there should be a rebound which will be at least a correction before further declines. The trigger for such a deep decline was a breakthrough on 17 March of significant support 84.70. However, it seems that demand has already paid quite a high price and the current level may return bullish sentiment.
Maintaining demand for 82.20 key support will be crucial
Support for 82.20 has been in play for the past 1.5 years, but the weekly chart shows that it has been playing a significant role since 2001. If the uptrends appear at this point, the nearest resistance towards which the price moves will be located on levels: 83.10, 84.70.
But if the supply breaks this key level, the nearest support is at 81.30, 80.20. Any breakthrough is only an alternative scenario. The level of 82.20 is the ideal place to counter the demand, regardless of whether it will only result in corrective gains or a new growth impulse.