CADJPY is extending its gains, recording a seven-week high of 83.95 earlier today and is set to complete the fourth straight green day. Also, the price surpassed the 20- and 40-simple moving averages (SMAs) which are on course to post a bullish crossover in the next daily sessions. The MACD is strengthening its bullish momentum, entering the positive area, while the stochastic continue its rise in overbought territory in the near term.
Should the price extend advances, the 61.8% Fibonacci retracement level of the downleg from 89.25 to 76.60 around 84.40 could be the immediate resistance for investors to look for. A climb above this significant level could turn the bias to a more bullish one and the market could head towards the 85.25 resistance, taken from the peak on December 13. If the latter permits for further upside rally the next stop could be around 86.25, registered on December 3.
On the other hand, a downside retracement could retest the 50.0% Fibonacci of 82.90, before challenging the SMAs, currently around 82.40. Moving lower, the 38.2% Fibonacci of 81.42 and the 81.25 support could attract attention.
Overall, CADJPY holds a slightly bullish profile in the short-term as it also surged above the medium-term descending trend line, which has been holding since October 2018.
