CADJPY Wave Analysis – 12 January, 2023

• CADJPY reversed from resistance level 98.50

• Likely to fall support level 96.00

CADJPY earlier reversed down from the resistance level 98.50 (former strong support from May, acting as the resistance after it was broken In December).

The resistance level 98.50 was strengthened by uptrend trend line from last year and by the 61.8% Fibonacci correction of the previous downward impulse from December.

Given the strong yen inflows, CADJPY can be expected to fall further toward the next support level 96.00 (which stopped the previous waves 3 and (C)).