CADJPY has been trading in such a way as to print lower lows since Dec 2016. This has formed a downward trend with a downward sloping resistance level (April onwards).
Recently after CAD's strong employment figures most CAD pairs have been heavily bullish on the CAD, and this make for an interesting scenario and potential trading opportunity on the CADJPY. If the pair violates the level it is currently sitting at, it will be the first time since Dec 2016 to print a higher high. This adds a lot of short bias, however, given that today is FED decision it is not unlikely that this happens.
CADJPY is currently at a key level of 82.365 that may determine its direction for the next few months. It is currently resting at the trend resistance combined with the 0.886 fib level. Also, there is very strong horizontal support.
Should the pair hold the 83.300-83.650 level, the pair should be good for short positions down to 81.000.
Should the pair violate its trend since April and break above 83.650, then we are likely to see a retest of 84.6 levels.
Safe and Successful Trading!
Recently after CAD's strong employment figures most CAD pairs have been heavily bullish on the CAD, and this make for an interesting scenario and potential trading opportunity on the CADJPY. If the pair violates the level it is currently sitting at, it will be the first time since Dec 2016 to print a higher high. This adds a lot of short bias, however, given that today is FED decision it is not unlikely that this happens.
CADJPY is currently at a key level of 82.365 that may determine its direction for the next few months. It is currently resting at the trend resistance combined with the 0.886 fib level. Also, there is very strong horizontal support.
Should the pair hold the 83.300-83.650 level, the pair should be good for short positions down to 81.000.
Should the pair violate its trend since April and break above 83.650, then we are likely to see a retest of 84.6 levels.
Safe and Successful Trading!