CAD/JPY TRADING Technique: BEARISH
Canadian Greenback sinks vs Yen, making good on Wedge and RSI divergenceBearish Engulfing candle sample hints 2-month upswing could also be exhaustedTake a look at of key 11-year assist attracts nearer, warning of tectonic bias change
Try our This fall Japanese Yen forecast to see what is going to drive the worth development by way of year-end!
The Canadian Greenback turned sharply decrease towards the Japanese Yen as anticipated, making good on a bearish Rising Wedge formation bolstered by unfavourable RSI divergence. The foreign money discovered interim assist within the 81.73-83 zone. A break decrease would purpose just under 81.00 had been promoting strain to renew.
Four-hour CAD/JPY chart created with TradingView
Zooming out to the weekly chart, positioning appears to recommend simply that’s within the playing cards. Costs have shaped an ominous Bearish Engulfing candlestick sample at resistance guiding them decrease for over two years. Affirmation is pending for now, however the setup’s reversal implications seem convincing.
Weekly CAD/JPY chart created with TradingView
That that is occurring towards alongside swelling threat urge for food is eye-catching. The bellwether S&P 500 index has pushed a report excessive, however a commodity-bloc foreign money has been battered towards the perennially anti-risk Japanese Yen. That appears to say loads about underlying CAD weak spot.
From right here, back-to-back assist ranges run all the way down to the 80.00 determine. A every day shut again under that might recommend the pull-up from August lows has been exhausted and the downtrend re-engaged. A subsequent break by way of development assist from January 2009 – now at 77.31 – would suggest a tectonic change of bias.
CAD/JPY TRADING RESOURCES
— Written by Ilya Spivak, Forex Strategist for DailyFX.com
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