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Chart Of The Day: CAD/JPY

Published 08/31/2021, 05:44 PM
Updated 07/09/2023, 06:31 AM
CAD/JPY
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CAD/JPY Daily Chart.

On Aug. 16, CAD/JPY was our “Chart of the Day.” The pair was expected to develop the neckline of a possible longer-term head-and-shoulder pattern. The pair did just that, but went a little further than expected. On that drop following Aug. 16, the pair fell to a low of the 84.67 and bounced. The problem with this move is that it created a “false breakdown” below the key 85.30 support and may have created a near-term inverse head-and-shoulder pattern. If this pattern plays out, we could rally towards the 88.50-89.00 level near term. With stocks at all-time highs, the risk of a move higher from here is heightened.

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