In the long-term, the CAD/JPY currency pair moves in a consolidation, the lower limit of which is around 80.53, and the resistance is close to 91.56. An important role may be played by the trend line running from the low from 2016.
After switching to the weekly chart below, we see that as a result of last week’s declines, CAD in relation to the Japanese yen has dropped to new minima and tested support at 83.61 and the vicinity of the long-term trend line. However, the closure on Friday took place over the confluence zone of supports, which proves that it has been respected.
An effective upward rebound gives us a chance to grow, where the first important goal can be found near 86.87. Another resistance is the high of September this year at 89.20. An alternative scenario assumes declines towards 80.53. However, in this case, the bears would first have to overcome the confluence of supports (level 83.61 + long-term upward trend line).