CAD/JPY 4H Chart: Pair waits bearish confirmation
The Canadian Dollar has been strengthening its position against the Japanese Yen since mid-June. This appreciation started when the rate bounced off a long-term trend-line near the 82.20 mark. As a result, the Loonie has been trading in an ascending triangle since the beginning of 2018.
Bulls were strong during the first weeks of this price increase; however, this momentum has since allayed, as indicated by the pair’s inability to move past the 200-day SMA near 86.00. In case this line is breached, the Canadian Dollar should accelerate and aim for the monthly R1 and the upper triangle line at 87.00.
On the other hand, the failure to move past this long-term moving average should be met with a decline down to the 55– and 100-day SMAs and the monthly S1 at 84.50 during the following week.
Bulls were strong during the first weeks of this price increase; however, this momentum has since allayed, as indicated by the pair’s inability to move past the 200-day SMA near 86.00. In case this line is breached, the Canadian Dollar should accelerate and aim for the monthly R1 and the upper triangle line at 87.00.
On the other hand, the failure to move past this long-term moving average should be met with a decline down to the 55– and 100-day SMAs and the monthly S1 at 84.50 during the following week.
Comment:
The Canadian Dollar is trading in several ascending channels against the Japanese Yen. The most important of the pattern is the junior ascending channel which was formed on August 12 and has guided the currency pair to a three-week high a the 86.28 marks.
During the past few days, the price action has surpassed the 50-, 100-, and 200-hour SMAs and has reached the upper boundary of the junior ascending channel.
Given that the three moving averages have fallen below the price, this might suggest that the overall trend of the market is changing. Therefore, the currency exchange rate is likely to continue its movement in the ascending channel during the following trading sessions.
During the past few days, the price action has surpassed the 50-, 100-, and 200-hour SMAs and has reached the upper boundary of the junior ascending channel.
Given that the three moving averages have fallen below the price, this might suggest that the overall trend of the market is changing. Therefore, the currency exchange rate is likely to continue its movement in the ascending channel during the following trading sessions.
Comment:
The Canadian Dollar has increased its trading range against the Japanese Yen. The currency pair bounced off from the lower boundary of a junior ascending channel at 83.70 on September 8 and had since reached near the upper border of the junior channel pattern.
Currently, the exchange rate is trading near a resistance cluster formed by the monthly and the weekly PPs at 86.66.
If the resistance level as mentioned earlier holds, the CAD/JPY currency exchange rate could make a brief retracement towards a support cluster set by the weekly pivot point and the 50-hour simple moving average at 85.44.
Currently, the exchange rate is trading near a resistance cluster formed by the monthly and the weekly PPs at 86.66.
If the resistance level as mentioned earlier holds, the CAD/JPY currency exchange rate could make a brief retracement towards a support cluster set by the weekly pivot point and the 50-hour simple moving average at 85.44.
Comment:
A three-week ascending channel has guided the Canadian Dollar higher against the Japanese Yen. The exchange rate bounced off the bottom border of the channel on September 9 and had since reached ten months high level at 89.00.
The currency pair is trading near a resistance cluster formed by the combination of the weekly and the monthly PPs at 89.55 during the morning hours of Tuesday’s session. From a theoretical point, this could provide a significant resistance level for the rate and push the pair towards the weekly pivot point at 87.47.
However, if this resistance cluster is unable to hold, the next target for the CAD/JPY currency exchange rate will be at the upper boundary of a long-term ascending channel near 90.00.
The currency pair is trading near a resistance cluster formed by the combination of the weekly and the monthly PPs at 89.55 during the morning hours of Tuesday’s session. From a theoretical point, this could provide a significant resistance level for the rate and push the pair towards the weekly pivot point at 87.47.
However, if this resistance cluster is unable to hold, the next target for the CAD/JPY currency exchange rate will be at the upper boundary of a long-term ascending channel near 90.00.
After hitting the upper boundary of the triangle pattern as mentioned above on August 1, the exchange rate reversed south, and as a result, the rate lost 264 base points or 3.06% of its values.
Given that the 55-, 100-, 200-hour simple moving averages have moved above the price, the CAD/JPY currency exchange rate is likely to continue driving down during the following trading sessions.