Forex Flash: Potential double top forming in CAD/JPY – TD Securities

FXstreet.com (Barcelona) - The CAD/JPY traded in very narrow range, closing the day 14 pips lower at 98.48. The pair appears to be consolidating recent gains but is having trouble building value above the critical 99.00 resistance level.

According to Shaun Osborn, Chief FX Strategist at TD Securities, “CAD/JPY is struggling around the 99 resistance area a bit more obviously today. Pattern-wise, price action over the past three days (including today’s session) are leaning towards the negative (“doji” candle yesterday, for example) but the narrow ranges make it difficult to conclude much at this point. A bigger rally to, and a bigger rejection of the 99 zone would make for a stronger reversal signal.”

He went on to add, “At the moment, perhaps the most we can say is that (like Tuesday’s moves) price action is not bullish but nor is it obviously bearish at this point. Short-term trend support at 97.17 is the next obvious support on the downside while the 94.50 area is important support from a broader point of view. There is a potential double top forming but that only gets triggered on a break of the early April low (93.67).”