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CAD/JPY correction could be over

CAD/JPY found support near the level of 98.57 (S3) and started consolidating. The pair has been ranging between 98.50 and 100.00 up to June 5. On June 5, the price finally broke above the ascending channel suggesting the continuation of a long term uptrend.

The Fibonacci level applied to the channel breakout point shows clear support and resistance levels. After the channel breakout, which took place on June 09, the pair formed a double top near 100.96 (R2) that resulted in a correctional move down. The key support, which is 61.8% Fibonacci level at 99.76 (S2), has been also rejected.

As the pair is currently rejecting the uptrend trendline again with the overall long-term uptrend confirmed to be valid, consider buying CAD/JPY near S1 (100.13) for as long as it remains above S2 (99.76). Target is 0% Fibonacci level at 101.70 (R3). Only a break below S2 could change the direction of the major trend.

Support: 100.13, 99.76, 98.57

Resistance: 100.50, 100.96, 101.69

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