It Looks Like CAD/JPY Will Continue Rising

After the false break below the trend line on the weekly time frame the pair fell with almost 200 pips, but it appears that was the end of the move to the downside, since CAD/JPY is once again climbing and is currently testing the resistance level at 85.30 – 85.50, visualized by the middle line of the Bollinger Bands indicator on the weekly time frame. On the daily time frame the same resistance level is visualized by (EMA)89.

It seems, however, that this time the pair will succeed in breaking above that level, so it can continue rising towards the next resistance level at 87.00 – 87.50. That is a quite strong resistance, since the pair has attempted to break above it twice and it has bounced off of it twice for the past two months (that is the red horizontal line on the weekly and daily time frames).

If the pair does succeed in breaking above that level the next serious resistance level is at 89.00 – 90.00.