CADJPY printed two daily closes and added more than 1% to its performance, following the strong rebound on the medium-term ascending trend line which overlaps with the 87.25 support level. The diagonal line is has been holding for 13 months.
Zooming on the recent upward movement and on the short to medium timeframe, the price struggles beneath the 50 and 100 simple moving averages as well as below the short-term falling trend line which stands since mid-September. If the price successfully surpasses the aforementioned obstacles, it could drive the pair towards the next resistance levels at 89.20 and 89.80.
An alternative scenario is a penetration of the significant uptrend line to the downside, which could expose the pair towards the 85.40 support barrier. It is worth mentioning that the price will have to slip below the 200-day SMA as well.
The MACD and the RSI momentum indicators are endorsing the bullish near-term tendency on price as both are rising. The MACD oscillator is moving higher in the negative zone and posted a bullish crossover with its trigger line, whilst the RSI indicator entered the positive area and is pointing north.
