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CAD/JPY - The Support at 92.20 Suggests Price Bottom Scenario

The CAD/JPY saw a sharp rally in the second half of March from 90.65 to 94.88. This swing looks like a bullish breakout swing, but could also just be part of an expanding consolidation. You can see relatively sideways action since late January.


(cad/jpy 4H chart, 4/14)

The pair has just bounced off a key area. The 92.20-92.30 area contains 
1) previous support/resistance pivots.
2) central pivot of the consolidation range.
3) fibonacci retracement of 61.8%

Support in this area means respect for the consolidation range as a price bottom.


(cad/jpy 4h, 4/14)

The daily chart shows how the 92.20 support was reinforced by previous price action in August 2013. We also see that the market is at the crossroad between a choppy bearish market since May 2013, and a price bottom that appears to be developing.