The Canadian Dollar bounced off the bottom boundary of a junior ascending channel against the Japanese Yen at the end of May. As a result, the currency pair has formed a new channel up.
This ascending pattern has already managed to move past two significant resistance level. Namely, the 55-hour simple moving average and the weekly pivot point at 84.17. However, after the exchange rate pierced the 100– and 200– hour SMAs at 85.16 it made a U-turn south.
Everything being equal, it is likely that the CAD/JPY currency exchange rate continues to maintain the newly formed channel until it breached the upper boundary of a descending channel.
