The Canadian dollar has bounced back sharply against the Japanese yen after the pair found strong dip-buying interest around the 88.90 level. The four-hour time frame shows that the CADJPY pair is approaching the top of a large descending broadening wedge pattern, around the 90.00 level. If bulls can break above the wedge then a major breakout towards the yearly high, around the 91.15 level, is likely to happen.
The CADJPY pair is only bullish while trading above the 89.60 level, key resistance is found at the 90.00 and the 91.15 levels.
If the CADJPY pair trades below the 89.60, sellers may test the 88.90 and 88.60 support levels.
