The Canadian dollar versus the Japanese yen currency pair gives the signs of a change in direction from a very important area.
Since the high of 85.23, the price is in a downwards movement, but there are two amendments with this apparent bearish profile. The first is that the channel is not steep enough to be classified as a convinced bearish one. A counterargument for this could be that the price managed to pierce to lower line on May 31, 2019, which gives credit to the bears. But it turned out to be a false break, as the price bounced back — after confirming 80.00 as support — inside the channel. And this brings into the light the second amendment: the price pierced a double support — the lower line of the channel and the solid support area of 81.38 — only to push back afterwards.
To this adds the fact that the low of 80.56 is a higher low and it confirmed the lower line of the channel as support, a behavior that a seller would not be to happy to see.
If the price manages to make a high higher than the one printed on 21 June (or, even better, on 20 June), then the way to 82.71 will be open. Only if — after the new higher high — the price comes bellow 81.38 and confirms it as a resistance, then the profile could be considered as bearish and a possible retest of the 80.00 level could be expected.
After the confirmation of 80.17 as support, the price began an ascending trend which will continue while the price oscillates above the aforementioned level. The false piercing of 81.11 is a possibility and will only strengthen the bullish conviction.
The next step is the confirmation of 81.77 as support, which makes it possible for the price to reach the area of 82.43.
Levels to keep an eye on:
H4: 81.11 81.77 82.43
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