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Technical Analysis – CAD/JPY trades below Bollinger band

CAD/JPY 06/05/19 | EconAlerts

CAD/JPY trades below Bollinger band; narrow range in the near term.

CAD/JPY has been finding strong support on the 81.60 level, after the gap down earlier on Monday, falling beneath the lower Bollinger band in the daily chart. Since the mid-January, the pair has been trading within a narrow range from 61.8% Fibonacci of the down leg from 89.25 to 76.60 near 84.40 until the 81.60 support.

Having a look at the momentum indicators, the RSI is pointing down below the neutral threshold of 50 and the MACD is hovering marginally below the trigger and zero lines.

A step lower could find immediate support at the 81.60 level, the 38.2% Fibonacci of 81.42 and the 81.25 level. More downside pressures could drive the pair towards the 23.6% Fibonacci of 79.65, increasing bearish sentiment.

An advance above the 50.0% Fibonacci of 82.90 could open the door for bullish actions until the 84.00 psychological level and the 61.8% Fibonacci of 84.40. If there is a successful daily close above the aforementioned obstacle, the pair could push until 85.25, while a sharper move higher could shift the neutral bias to more bullish one, testing 86.25.

However, a break below the 38.2% Fibonacci and the 81.25 support could confirm the long-term negative momentum.


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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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