CAD/JPY Is Still Trying to Break Above the Resistance

Since the pair could not break above the resistance at 85.30 – 85.50 several days ago and opened with a bearish gap when the market opened this week, today CAD/JPY started testing the resistance level again.

The pair recovered the gap and continued climbing, reaching the same level it visited four days ago, at the resistance at 85.00, visualized by the blue line of the Bollinger Bands middle band on the daily time frame. A little above that level (85.30 – 85.60) is the other resistance level visualized by the green line of (EMA)89 on the same time frame.  It is obvious this is a very strong zone of resistance, but it is also very telling that the pair returned to that level so decisively which is an indication that CAD/JPY is still trying to break above it.

Another signal that supports this idea is the doji candlestick that formed on the weekly time frame, which suggests that the move to the downside might be over for now.

In case the pair does break above the resistance the next target is around 87.00.