The last technical analysis today is about rather an exotic pair – CADJPY. We already mentioned the CAD here and we are very positive about the future of this currency. On both setups, here we are optimistic too and we have good reasons to think that. CADJPY is having a very nice, technical bullish setup, here it is:
As You can see, the price was forming a huge Head and Shoulders pattern (yellow). That was negative but this pattern got denied and traders did not manage to break the neckline (black). Instead of that, the price went higher and in the previous week, broke the long-term down trendline (red). Along with the trendline, buyers managed to break the horizontal resistance around 87.
As for now, the buy signal is on. The potential target is on the orange resistance and chances that we will get there are very high. Positive sentiment will be denied, when the price will break the green support, which in current situation is very unlikely.