CADJPY has spent the last three sessions consolidating above the February 26th high of 84.30. The recent sideways price action began following Tuesday’s 180-pip rally that placed the pair above the key handle on a daily closing basis.
The fact that the pair has managed to hold above 84.30 for several days now indicates that the area remains well bid and thus, a bullish breakout may be on the horizon.
A look at the 4-hour chart shows where such a break may occur. The 85.20 level has capped every advance so far this week. However, if the bullish momentum that has been in place since late February persists into next week, we could see this level give way to higher prices.
How high?
There is some minor resistance around 86.20, but a retest of the February high at 87 shouldn’t be ruled out. Of course a 4-hour close below 84.30 would negate the bullish bias and expose the 82.80 support level.
