Since the end of November, the CAD/JPY currency pair has been trading upwards within a rising wedge pattern.
From a theoretical point of view, it is likely that the exchange rate could extend gains within the predetermined pattern until the beginning of March. Then, a breakout south could follow, and the rate could decline to the Fibo 23.60% at 78.44.
Meanwhile, note that the currency pair is supported by the 55-, 100– and 200-period moving averages in the 81.50 area. Thus, some upside potential could continue to prevail in the market.
