Bullish momentum dominated the CAD/JPY currency pair last week and thus sent the pair to breach the previously drawn pattern. As a result, the rate gained 201 base points or 2.44%.
Given that the exchange rate broke the previous channel, a new junior pattern has been mapped to monitor the price movement. Furthermore, the 200-hour simple moving average was providing strong resistance near the 84.24 mark.
As for near future, the Canadian Dollar is likely to continue trading in the channel down against the Japanese Yen during the following trading sessions. The currency exchange rate could decline further south to test either the 100-hour or 55-hour SMAs within the next hours.
