The CADJPY currency pair looks to be forming a symmetrical triangle formation in the hourly. If the pair break’s above the triangle’s resistance, its price could reach the next significant level at 88.67. On the other hand, a breakdown from the pattern could send it down to the support at 85.83. Still, the pair has a higher chance of breaking to the upside since the pattern is coming off an uptrend. In any case, to be a little conservative, I would wait for a breakout in either direction before opening a position. A straddle strategy would work better in this kind of situation where I would sell the Japanese yen in exchange of the Canadian dollar if the pair breaks up. Conversely, I would sell Loonie for the JPY if and when the pair breaks down.
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