Technical analysis

CADJPY Wave Analysis – 27 March 2023

• CADJPY reversed from support level 94.80

• Likely to rise to resistance level 97.00

CADJPY previous reversed up from major support level 94.80 (which stopped the previous sharp downtrend in the middle of January), standing near the lower daily Bollinger Band.

The upward reversal from the support level 94.80 created the daily Japanese candlesticks reversal pattern Hammer – similar to the one the pair created in January.

Given the oversold daily Stochastic and the strong yen sales, CADJPY can then be expected to rise further toward the next resistance level 97.00 (top of the previous correction 2).

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