Monday, February 24, 2020
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Technical Analysis – CAD/JPY remains in a bearish phase

CAD/JPY has been finding strong resistance on the 38.2% Fibonacci retracement level of the downward wave from 89.25 to 76.60, near 81.42, falling beneath the 20-simple moving average (SMA) in the daily chart. Having a look at the momentum indicators, the RSI is sloping down below the neutral threshold of 50 and the MACD is hovering near the trigger line and below the zero level.

A step lower could find immediate support at the 79.94 support and the 23.6% Fibonacci of 79.65. More downside pressures could drive the pair towards the two-year low of 76.60, taken from the bottom on January 3.

An advance above the 38.2% Fibonacci of 81.42 and the 20-day moving average could open the door for bullish actions until the 40-SMA of 82.13 and the 82.60 resistance. If there is a successful jump above the 50.0% Fibonacci of 82.90, prices could challenge again the significant 61.8% Fibonacci of 84.40.

However, a break below the 23.6% Fibonacci of 76.65 could confirm the long-term negative momentum.


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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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