CAD/JPY 1H Chart: Channel Down

4 ago 2017

CAD/JPY 1H Chart: Channel Down

• The Canadian Dollar is depreciating against the Japanese Yen in weekly descending channel, which started to form shortly after the currency exchange rate left the double top formation.
  
• By the moment, the channel has two confirmation points from the top and three from the bottom.
  
  
• The latest rebound happened after the currency pair slipped to the weekly S2 at 87.43. Since the channel has reached maturity, the rate might leave the formation already by the end of the day.
  
• However, the fact that during this whole week the pair was sliding along the 55-hour SMA, which neutralized multiple attempts to break to the top, suggests that a new rebound most likely is going to follow.
  
• Nevertheless, a release of a bunch of the Canadian macroeconomic data at 12:30 GMT might alter the above scenario and even accelerate the fall of the rate.