![\"CAD\/JPY](\"http:\/\/i.imgur.com\/DGoQR1H.png\")
<\/p>\nIt\u2019s easy to spot a couple of bullish signals – followed by positive gains all week round – and believe a downtrend has changed it\u2019s direction.<\/p>\n
In CAD\/JPY\u2019s case, while the first bullish signals were obvious, starting with the double bottom at 90.64 and continuing with a cross over the trendline based on March highs, it\u2019s important to underline that up to 92.22 the pair was still technically bearish.<\/p>\n
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The most recent swing high in this month\u2019s downtrend is at 92.22. This level coincides with the 200 Simple Moving Average on the 4h timeframe, a line usually depicting the separation between the bearish and bullish territory.<\/p>\n
Up until now CAD\/JPY has only retraced the last bearish swing. With a bullish break and close above 92.22, the pair would finally confirm the bullish trend. It should be noted that there is a secondary resistance nearby at 92.44, a confluence between February\u2019s pivot zone and the trendline from January, which may still cause small rejections in the short term.<\/p>\n
Failure of confirmation for the bullish trend will lead CAD\/JPY to pull back towards 91.50, possibly even 90.64, to test the main support levels. With a double top at 92.22 and a double bottom at 90.63, the pair will technically be in a range between these levels.<\/p>\n
********* <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" It\u2019s easy to spot a couple of bullish signals – followed by positive gains all week round – and believe a downtrend has changed it\u2019s direction. In CAD\/JPY\u2019s case, while the first bullish signals were obvious, starting with the double bottom at 90.64 and continuing with a cross over the trendline based on March highs, … <\/p>\n
\nPrepared by Alexandru Z., Chief Currency Strategist at <\/i>Capital Trust Markets<\/i><\/a><\/p>\n