Descending Trend-Channel May Keep Restricting CADJPY Up-Moves
CADJPY's pullback recovery from 85.40 45 is likely to be challenged by the three week old descending trend channel resistance, followed by the horizontal line, around 86.65 80 region. In case if the pair successfully surpasses 86.80 resistance, the 87.40 and the 87.75 are likely following north side numbers to appear on the chart, breaking which the 88.20, 88.70 and the 89.25 30 might entertain the Bulls. Moreover, buyers' dominance over the prices after 89.30 could help the traders witness 90.00 round figure as a quote.
Alternatively, 86.00 may offer an immediate support to the pair in case of its U turn, clearing which the channel support of 85.20, adjacent to 85.00 rest point, should gain the attention. During the pair's additional downside after breaking 85.00, the 84.50, the 84.20 and the 83.60 can act as barriers prior to dragging it towards 83.20 15 re test.