On the Daily chart, CAD/JPY has started to produce higher highs and higher lows. Back on June 5th, the price tested the high at 81.89, after which a 340 pip wide consolidation has started. Right now, CAD/JPY is trapped between the 78.00 support and 81.40 resistance area.
Two most recent bounces show that 78.00 support has been rejected, after which the price went up, broke above one of the downtrend trendlines, and rejected the second downtrend trendline. This might suggest that the range-trading is still on, and CAD/JPY could be yet again correcting down.
Nonetheless, the major trend is bullish, and it seems this is only a matter of time, before/if price breaks above the recently produced high at 81.42. This might trigger a strong bullish wave, where the price can rise up to 78.6% Fibs at 82.43 or 88.6% Fibs at 83.50.
However, before the 81.42 is broken, CAD/JPY can be expected to initiate yet another corrective wave to the downside. Potentially, the pair might be aiming for the 200 Exponential Moving average, which corresponds to the uptrend trendline that might act as the support in the future.
On the daily chart, the key support area is located between 78.00 and 77.60. Only break and close below this area will invalidate bullish outlook, in which case, the long-term downtrend should take place.
Key support levels: 78.45, 78.00, 77.60
Key resistance levels: 81.40, 82.43, 83.50
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Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
Two most recent bounces show that 78.00 support has been rejected, after which the price went up, broke above one of the downtrend trendlines, and rejected the second downtrend trendline. This might suggest that the range-trading is still on, and CAD/JPY could be yet again correcting down.
Nonetheless, the major trend is bullish, and it seems this is only a matter of time, before/if price breaks above the recently produced high at 81.42. This might trigger a strong bullish wave, where the price can rise up to 78.6% Fibs at 82.43 or 88.6% Fibs at 83.50.
However, before the 81.42 is broken, CAD/JPY can be expected to initiate yet another corrective wave to the downside. Potentially, the pair might be aiming for the 200 Exponential Moving average, which corresponds to the uptrend trendline that might act as the support in the future.
On the daily chart, the key support area is located between 78.00 and 77.60. Only break and close below this area will invalidate bullish outlook, in which case, the long-term downtrend should take place.
Key support levels: 78.45, 78.00, 77.60
Key resistance levels: 81.40, 82.43, 83.50
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.