CAD/JPY’s rally continues this week and the break of 91.16 resistance should confirm resumption of medium term up trend from 73.80 (2020 low). Current development argues that whole down trend from 106.48 (2014 high) has completed with three waves down to 73.80. That is, rise from 73.80 is developing into the third wave of the pattern from 68.38 (2009). It’s itself a medium to long term up trend that has the prospect of surpassing 106.48 eventually.
Of course, CAD/JPY will have to sustain above 91.62 resistance first, and then accelerate further up through 61.8% projection of 73.80 to 91.16 from 84.65 at 95.37, to give us more confidence on this long term bullish case. By anyway, for now, further rise is expected as long as 88.99 support holds, in case of retreat.
