Recovery continues...
The CADJPY traded at the highest level since February 27th. The price took out the highs from last week at 84.25 area from Thursday and Friday of last week. Thusday was an up day and closed near the highs. Friday reversed the rise. The low on Friday stalled at the underside of a broken trend line. Today that trend line also did a good job at supporting the market.
Drilling to the hourly chart below, the price at the low not only was testing the underside of the broken trend line, but also successfully tested and held the 100 hour MA (blue line in the chart below). That was the the 2nd line in 4 days the 100 hour MA held support. That too is bullish from a technical perspective. Needless to say, going forward, the rising 100 hour MA will be a support target. Stay above is more bullish. Move below and the bullishness starts to unwind.
What now?
The bullish news is the bouncing off the broken trend line and the 100 hour MA. What is the next test - and something that can stall the rally - is that the underside of the broken trend line on the hourly chart has put a stall on the rally a bit, and the price is back below the highs from Thursday and Friday (see red line on hourly at 84.256). That has the potential to stall the move after the run up. We currently trade just below at 84.20. Longs from below, want to see those levels rebroken.
PS As posted earlier, the USDCAD stalled at the 50% at 1.2685 and the 100 day MA at 1.26923. That stall, corresponded with the test of the topside resistance targets on the hourly too. So it seems both have reasons to stall and both may have reasons to break and run if the trends continue. Be aware. CLICK HERE for that post and those levels...
