The CADJPY displays a formation that looks remarkably like a pennant. This is because of the ‘flagpole’ which tells us the strong upward momentum in its previous rally. This flagpole and subsequent side-way movements suggests a continuation action after profit-takers have been cleared and strong bulls take command.

Possible pennant in CADJPY

On the other hand, price remains resisted by an August 2009 level so upside is restricted until this level is breached successful.

Equidistant channel in 4 hour chart of CADJPY

In the 4-hour chart, an equidistant channel can be seen. The resistance of this channel is the resistance of this possible pennant formation.