Daily chart shows a good idea of long term potential, but if you look at 1hr-4hr charts you can see a clearer picture of price action. Purple fib extension was drawn from structure low to swing high on 6/19, black fib extension was drawn from structure high to structure low, and white fib is a retracement from high to low. These fibs show multiple signs of confluence with previous support and resistance areas.
If the price of oil continues back towards the downside it will cause cxy into a decline; in turn cadjpy will use the 1.41fib as well as the 50 EMA on a weekly timeframe as its resistance. If price breaks out of the red lines (outer perimeter of the blue box) expect to see movement towards the yellow support and resistance zones.
*Note* Price is currently consolidating at the 1.41 fib, with a bullish flag on the 30min charts.
If the price of oil continues back towards the downside it will cause cxy into a decline; in turn cadjpy will use the 1.41fib as well as the 50 EMA on a weekly timeframe as its resistance. If price breaks out of the red lines (outer perimeter of the blue box) expect to see movement towards the yellow support and resistance zones.
*Note* Price is currently consolidating at the 1.41 fib, with a bullish flag on the 30min charts.