The Canadian Dollar has been appreciating in a channel up against the Yen since mid-December. Along the way, the pair breach the prevailing three-month descending channel. Meanwhile, it has reversed near the dotted line on several occasions within the aforementioned short-term pattern. In case the Loonie fails to breach this line today, a breakout south is likely to occur. In addition, technical indicators show that a surge should not occur within the following week, thus confirming the gradual strengthening of the bearish scenario. In this case, the pair should be sent towards the 200-hour SMA circa 89.55 early next week and maybe even further south down to the monthly PP at 89.94.
