The CAD/JPY currency pair has been trading in a descending channel pattern since the beginning of October. This channel was formed when the pair made a U-turn from the upper boundary of a long-term ascending channel at 89.00 on October 3.
The exchange rate is trading near the upper boundary of the channel pattern at 86.18 during the morning hours of Wednesday’s session.
If the currency exchange rate passes that upper border, the next for bullish traders will be at a swing high of 87.50.
However, a resistance cluster formed by the combination of the weekly, the monthly and the 200-hour SMA at 86.53 could hinder the price from reaching the target today.
