CADJPY Wedge Pattern to Offer Breakout Opportunity

Like other yen pairs, CADJPY has been relatively uneventful this year.

It’s also been a difficult pair to trade.

Since the 1,000 pip decline at the start of the year, CADJPY has consolidated for the last eight months.

That’s especially true judging by the price action since June.

However, that consolidation may lead to an opportunity over the coming weeks.

Whether that becomes a buying or selling opportunity is yet to be seen.

My gut tells me a breakout here leads to a higher CADJPY, but we’ll see.

A daily close above the June trend line would expose 81.60 and perhaps 84.50 as we head into 2021.

Alternatively, a break below trend line support would expose the 78.00 region.

Keep in mind that there is also a trend line that could come into play on the monthly time frame.

This is similar to the trend line we looked at yesterday on EURJPY.

At the moment, that level comes in just above the 82.00 area.

But for now, the trajectory of CADJPY hinges on what happens at trend line resistance just above 81.00.

A close above that could take the pair toward 84.50.

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