The Canadian currency is attempting to move higher against the Japanese yen after last weeks major price drop under the 88.00 level. The four-hour time frame shows that a massive inverted head and shoulders pattern will form if the price reaches the 91.15 level. Traders that are bullish towards the CADJPY pair may look to buy into pullback around the technically important 89.60 area.
The CADJPY pair is only bullish while trading above the 89.60 level, key resistance is found at the 90.30 and the 91.15 levels.
If the CADJPY pair trades below the 89.60, sellers may test the 89.00 and 88.60 support levels.
