Since February 11th, CADJPY has been moving higher in a succession of higher highs and higher lows on the intraday charts. However, this recent move appears to be running out of steam, at least from a technical perspective.
The rising wedge that has been forming since late February indicates that we could see an eventual break lower, perhaps after a second retest of the 2016 high at 87. But as always, the downside potential from this rising wedge will only materialize on a close below support, which currently resides near the 85 handle.
Alternatively, a close above confluent resistance at 87 would signal that a continuation of this rally is in order with the first stop being 88.85. I will continue to monitor this pattern over the coming sessions in order to determine which direction the market favors.
