CAD/JPY Is Testing 87.05

After the market opened earlier today CAD/JPY moved to the downside until it reached the support at 87.05 which coincides with the (MA)89 indicator on the one-hour time-frame and it has been testing that support ever since. It’s quite possible for the pair to bounce off it, because it has formed a spinning top candlestick on the same time-frame right above the indicator. If it does bounce off it then we can likely expect a new move to the upside towards 87.60. On the other hand, if the move to the downside continues and CAD/JPY breaks below 87.05 – 87.00 then there will likely be a further drop towards the next support level, which is at 86.75 and is the (MA)89 indicator but on the four-hour time-frame.