CAD/JPY Is Testing the Resistance at 78.20

CAD/JPY formed a large bullish gap when the market opened yesterday and so far the pair has not recovered that gap yet. It has, however, formed a hanging man candlestick on the daily time-frame below the resistance at 78.20. Despite that hanging man candlestick the pair is still testing the resistance level and a possible breakout above it will likely lead to a further move to the upside towards the next resistance at 78.85, which coincides with the (MA)89 indicator on the same time-frame. On the other hand, if the hanging man candlestick turns out to be a valid signal for an impending move to the downside then we will likely see the pair recover the aforementioned gap.

All that said, keep in mind that the elections in the USA today will cause major volatility on the market that could affect even non-USD pairs.