CAD/JPY: buy opportunity
• CAD/JPY forms weekly Bullish Engulfing
• Next buy target - 96.00
CAD/JPY last week rose sharply – after the pair reversed up from the strong support zone lying between the support level 92.00 (which has been reversing this currency pair from 2013, as you can see from the weekly CAD/JPY chart below), the lower weekly Bollinger Band and the 38.2% Fibonacci Retracement of the earlier extended weekly upward impulse from October of 2011. The upward reversal from this support zone created the weekly Japanese candlesticks reversal pattern – Bullish Engulfing.
Given that the weekly Stochastic indicator is still moving in the oversold territory, CAD/JPY can be expected to rise further in the active impulse (3) toward the next resistance level 96.00.