CADJPY Wave Analysis 7 December, 2020

• CADJPY reversed from long-term resistance level 81.40

• Likely to fall to 80.50

CADJPY previously reversed down from the long-term resistance level 81.40 (which reversed the price multiple times from the start of March as can be seen below).

The resistance area near the resistance level 81.40 was strengthened by the upper daily Bollinger Band.

Given the overbought daily Stochastic and the strength of the resistance level 81.40 – CADJPY is expected to fall further toward the next support level 80.50 (target price for the completion of the active impulse wave i).