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I posted a CADJPY chart a few days ago, noting two potential scenarios. The first was that we see bearish price action at channel resistance which would indicate a continuation of the equidistant channel. The other was a break of resistance which may have much larger implications.
Today the market broke out from channel resistance, closing nearly 50 pips above the key level. This was a significant move in and of itself, but a weekly close up here would be much more impactful. More on that in a moment.
For now we can look for bullish price action at former channel resistance between 97.10 and 97.30. The next key resistance level comes in at the December 2013 high and 2014 year open at 99.0.
If this market should close out the week above the 97.30 area I do think we could see a much larger bull run take shape over the following weeks and months. See the weekly chart below.
Summary: Watch for bullish price action between 97.10 and 97.30. Key resistance comes in at 99.0.
CADJPY weekly chart:
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