The Canadian dollar versus the Japanese yen currency managed to oscillate above 81.30 and confirmed it with the low of September 30.
Reentering in the descending channel after the low printed at 78.49 marked a period that favored the bulls, who managed to bring the price above the old support area of 81.38. This was followed by a confirmation that ended with the break of the support. But, surprisingly, the bulls were able to make their comeback and reconquered — at least for now — the level.
In this context, the expectations are for the bullish profile to continue. While it is possible to see another failed bearish attempt to pierce the support level, it would be better to view only an appreciation that will take out the previous high at 82.08. Otherwise it is possible to see the development of a bearish angled rectangle, a continuation pattern that will temporarily stall the appreciation, but later on favor a strong move to the upside, one that will challenge the resistance line of the descending trend.
So, as long as any bearish attempt to consolidate the price under 81.38 clashes, 82.71 is exposed, as it is if the price simply continues to oscillate in a manner in which is making small steps towards the north.
The level got out of an angled rectangle and, as it should do given the chart pattern, continued the move towards the next resistance, 81.77, respectively.
A good sign is that it tried to confirm it as resistance but the move was invalidated. Not that the bears would not be able to push the price downwards later on if they really have means, but the fact that the confirmation as resistance of the 81.77 level failed, is a sign that the bulls are still in control.
So, as long as the price confirms 81.11 or 81.77 as support, 82.43 is exposed. Only the break of the 81.11 support can trigger a decline towards 80.64.
Levels to keep an eye on:
D1: 81.38 82.71 80.00
H4: 81.77 82.43 81.11 80.64
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