We've continued to monitor CAD/JPY's potential to break higher, following its 3-wave correction and break of its channel. Having consolidated above its channel throughout last week, Friday’s range expansion candle saw the cross stop just shy of its 200-day eMA and 19th March high. Furthermore, it’s kept alive its potential for form an inverted head and shoulders pattern which, if successful, projects a target around 86.65.
That said, the structural highs around 85.24 and 86.25 make likely interim resistance levels. For noe, we’re waiting for momentum to extend gains above the 00-day eMA and Friday’s high to confirm the inverted H&S pattern. The bias remains bullish above the 83.10 low.
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