CAD/JPY 1H Chart: Channel Up

Before forming the channel up on an hourly chart the currency pair was at risk of breaching the 200-hour SMA, which would imply a bearish outlook. However, the simple moving average withstood the downward pressure, allowing the Canadian Dollar to gradually appreciate during the last 170 hours.

Just recently CAD/JPY has touched upon the rising support line at 95.95, where the 200-hour SMA is currently standing. This means that the price is likely to target 97.54, the upper edge of the channel. Still, 71% of SWFX market participants hold short positions.