CADJPY Technical Analysis: Waiting for a Breakout to Signal Next Move
12 May 2023
This week was really good for the Japanese Yen, especially on Wednesday and Thursday. Therefore, our technical hero of the day will be CADJPY, where the price should soon decide on its future direction.
If we look at the long-term trend for the whole of 2023, CADJPY is creating a double bottom formation (yellow), which in theory should result in an upswing. However, a full-fledged buy signal is missing, as the neckline of this formation (labeled in blue on the chart) has not been breached, despite attempts in the previous week.
The recent rise is creating a flag formation (black) on the chart, which may be good news for sellers. A proper sell signal would require a breakout of the lower line of the channel up formation. Thus, the price is really close to providing us with a proper trading signal, and which way it will go will be revealed in the coming week.