The Canadian Dollar has been moving in a junior ascending channel against the Japanese Yen. The currency pair bounced off the lower boundary on March 19 and has since surged.
The exchange rate has tested the upper border of a dominant descending channel and could be set for a breakout. The CAD/JPY currency pair was stranded between SMAs at the time of this analysis. The 55– hour simple moving average was restricting the pair from making further movement north. While the 100– hour SMA was providing support.
As for near future, if the aforementioned breakout occurs, the currency exchange rate is likely to reach a potential target at 87.00 set by the monthly pivot point.
