The Canadian dollar remains under technical pressure against the Japanese yen ahead of today’s Bank of Canada interest rate decision. The daily time frame shows that a large head and shoulders pattern is still in play and has yet to reach its full downside target. According to the overall size of the bearish price pattern the CADJPY pair could still fall towards the 86.50 support level.
The CADJPY pair is only bullish while trading above the 88.40 level, key resistance is found at the 89.00 and the 89.60 levels.
If the CADJPY pair trades below the 88.40, sellers may test the 87.40 and 86.70 support levels.
