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Technical Analysis – CAD/JPY

CAD/JPY 16/04/2018 | EconAlerts

CAD/JPY maintains bullish bias after rebound on 80.50.

CAD/JPY has been making higher lows and higher highs since the middle of March when it touched a nine-month low of 80.50, pausing the downtrend and creating a bullish tendency. The technical indicators continue to send bullish signals, suggesting that the strong upward movement in the market is not over yet.

In the 4-hour chart, the Relative Strength Index (RSI) is sloping to the upside, while the %K line of the stochastic oscillator is creating a bullish cross with the %D line in the oversold zone, signaling further strong gains in price action. Over the last few hours, the pair headed above the 20-simple moving average (SMA) and is holding well above the 40-SMA.

If the market manages to pick up speed, the price could touch the two-month nearby resistance of 85.75. A jump above this level could open the way towards the 50.0% Fibonacci retracement level of 86.00 of the down-leg from 91.56 to 80.50. Moreover, in case of further upside movement, it would raise the chances for a challenge of the 86.75 level.

Should prices decline, immediate support could be found around the 38.2% Fibonacci level of 84.74, an area which is near the 84.55 support level. Then a leg below that level, the pair could meet the 83.50 level before the focus shifts to the 23.6% Fibonacci near 83.12.

CAD/JPY 16/04/2018 | EconAlerts

 

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Disclaimer:
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.


source: XM

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