• CADJPY reversed from resistance area
• Likely to reach support level 87.00
CADJPY currency pair recently reversed down from the resistance area located between the key resistance level 88.10 (previous monthly high from March) and the upper daily Bollinger Band. The downward reversal from this resistance area started the active minor corrective wave (ii) – which belongs to the short-term upward impulse sequence 5 from the end of March.
Given clear bearish divergence on the daily Stochastic indicator and the strongly bullish sentiment affecting the yen today – CADJPY currency pair is likely to fall further toward the next support level 87.00 – target price calculated for the completion of the active minor corrective wave (ii).