Categories: Technical analysis

CADJPY Wave Analysis – 21 July, 2021

• CADJPY reversed from support zone
• Likely to rise to resistance level 88.65

CADJPY recently reversed up from the support zone lying between the key support level 85.45 (former multi-month low from April) and the lower daily Bollinger band.

The upward reversal from this support zone create the daily reversal pattern Piercing Line, which stopped the earlier impulse wave 3

Given the strongly bullish CAD sentiment – CADJPY can be expected to rise toward the next resistance level 88.65 (top of the previous correction (ii)).

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