CAD/JPY posts aggressive bearish move; holds near 9-month low.
CAD/JPY has been plunging since the pullback on the 91.60 resistance level. The pair posted three consecutive weekly bearish sessions and recorded a fresh 9-month low of 81.36 level, while it touched the lower Bollinger band. The short-term technical indicators are endorsing the aggressive sell-off in the price action.
Technically, in the daily chart, the MACD oscillator continues to strengthen the downwards move below the zero and trigger lines, while the RSI indicator is holding within the oversold zone, suggesting that the negative movement continues.
Further losses should see the June low of 80.85 acting as a major support. A drop below the 80.55 – 0.8085 support zone could reinforce the bearish structure in the short-term and open the way towards the next key level of 0.7970 taken from the high in October 2016.
Conversely, in case of an upside retracement, the price could touch the immediate resistance at 83.20. A jump above this area could open the door for the mid-level of the Bollinger band near 84.00.
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