CAD/JPY loses ground below the descending line.

CAD/JPY has been moving within the 61.8% Fibonacci retracement level of the downward wave from 89.25 to 76.60 near 84.40 and the 23.6% Fibo of 79.65 after the bounce off the two-year low of 76.60 on January 3. In the medium-term, the pair has been remained below a descending line, suggesting a somewhat bearish structure.  

Technically, the RSI is flattening near the neutral threshold of 50, while the MACD is edging lower below the trigger line.

A step lower could find support around the 40-simple moving averages (SMA) currently at 81.90 before touching the 38.2% Fibo of 81.42. In case of steeper declines could turn towards the 80.55 area.

An advance above the descending trend line and the 50.0% Fibonacci of 82.90 immediate resistance is coming from the 83.25 level. More bullish actions could be faced near the 61.8% Fibonacci region, which overlaps with the 84.40 resistance level, registered on April 17.

Concluding, a break above the 61.8% Fibo of 84.40 in the near term could change the bearish outlook to bullish. However, in case of a pullback below the 23.6% Fibonacci, this 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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