The price movement of the CAD/JPY currency pair has been constrained by two ascending channels. The most recent pattern which was formed on May 30 and is currently guiding the rate higher.
After retesting the lower boundary of a junior pattern where the weekly pivot point at 83.85 is located, the exchange rate continues its journey north. This junior ascending pattern has been holding for the second week running.
Given that the currency exchange rate has breached a strong resistance level located near the 84.92 area, the pair is likely to continue gaining strength until it reaches the upper boundary of a dominant channel.
