© Dukascopy Bank SA
Although the length of the channel up on an hourly chart of CAD/JPY is merely 50 bars, both trend-lines composing it are consistently respected by the price. This implies that a test of the lower trend-line at 96.99 should result in a robust rebound that will eventually extend up to 98.03, the upper edge of the positively-sloped corridor. While headed there the pair will have to overcome resistances created by the daily pivot point at 97.16 and daily R1 level at 97.80.
However, three out of four traders are bearish towards CAD/JPY at the moment, suspecting that the upward momentum will be unable to push the price higher any more.
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