After it succeeded in breaking above the resistance zone around the middle line of Bollinger Bands and (EMA)89 indicators on the daily time frame around 85.30 and continued rising, yesterday the pair reached the strong resistance level on the same time frame at 87.00, visualized on the screenshot with the red horizontal line, but it failed to break above it.
CAD/JPY continued testing it in vain for almost 20 hours and eventually the pair started falling.
I think it is quite possible for the pair to continue falling towards 85.00, which would now be a level of support, rather than resistance.
If it does remain above that level, I think we will likely see it test 87.00 again. The alternate scenario is to break below 85.00 and continue falling towards the next support at 82.30 – 82.00, which is visualized by the lower band of Bollinger Bands on the daily time frame.
It could have found some resistance.
ReplyDeleteInteresting anlaysis.
ReplyDeleteGood post.
ReplyDeleteThat's good to know, thank you.
ReplyDeleteTaking note of key levels to keep track and follow up.
ReplyDelete