CAD/JPY has been trading up since May 19. On June 5, the price broke above the ascending channel and found the resistance near 100.94. The pair has been trading sideways between 101 and 99.45 areas for over two weeks.
These levels are also represented in Fibonacci values applied to the channel breakout point, which is S2 support (61.8%) and R2 resistance (23.6%). The channel breakout indicates on the uptrend and the price is above the 200 moving average, which was almost touched on June 19.
Overall, there is a significant resistance at S2 (99.75) where the double bottom is formed. The pair failed to hit lower lows but reached a higher high on June 18. Considering that the uptrend is valid, the probability for an uptrend continuation remains high. It seems reasonable to look for buying opportunity between S1 (100.12) and R1 (100.49) targeting 0% Fibonacci – R3 (101.68) area. Only a break below S2 (99.75) should immediately change the direction of the trend.
Support: 100.12, 99.75
Resistance: 100.49, 100.94, 101.68
The material has been provided by InstaForex Company – www.instaforex.com