CAD/JPY: buy target - 89.00
By: Dmitriy Chernovolov
- CAD/JPY reversed from pivotal support level 88.00
- Next buy target - 89.00
CAD/JPY continues to rise after the recent upward reversal from the pivotal support level 88.00 (which also previously reversed the sharp intermediate impulse wave (1) in the middle of June, as you can see from the daily CAD/JPY chart below). The price earlier broke through three consecutive support levels – 90.70 (previous sell target set for this currency pair), 90.00 and 89.00 – which accelerated the active minor impulse wave 3.
Given the oversold reading on the daily Stochastic indicator – CAD/JPY can be expected to rise further to the next buy target at the resistance level 89.00. Strong support remains at 88.00.