Since the beginning of January CADJPY declined until January 20 when PIN BAR candle with a very long shadow occurred just above support at 78.90 (support from 2012). It was a first signal that rebound may occur. It happened thanks to information from BoJ about further easing action. Due to this rebound we saw a dynamic upward movement and at the chart you can see rare V bottom pattern.
Despite of latest upward move it has to be noted that in a long term price moved in a downtrend and current upward movement didn’t reach even Fibonacci 61,8% of previous almost 2-months falls. Currently it is likely that CADJPY will test area 89.10 and at that level some kind of correction should occur. Long term sentiment may change for an uptrend one when price will move back and stay above 89.10 level and next resistance at 92.90 will be break above.
Time-frame D1:
