CAD/JPY 1H Chart: Channel Up

Formation of this channel up is the currency pair's second attempt to surge from a low of 91.81 reached on Jun 13. A previous rally failed to extend beyond 95.13 (Jun 20 high)—a level that may again prevent prolonged appreciation of the Canadian Dollar relative to the Yen. Moreover, traders' sentiment is strongly negative at the moment, being that 74% of SWFX market participants are bearish on CAD/JPY.

Nevertheless, we should pay more attention to the lower edge of the pattern, as it was confirmed on more occasions than the upper trend-line and is still capable of underpinning the rate.