Canadian Greenback (CAD/JPY) Value Forecast:
Canadian Greenback Outlook: CAD/JPY Stalls, Will the Downtrend Resume?
The Canadian Greenback loved a modest rally versus the Japanese Yen final week, driving from 81.6 to 82.four in a sequence of quiet buying and selling classes. Now, the pair nears resistance that resides across the 83 stage and a considerable breakdown within the value of crude oil might be the catalyst wanted to see the Canadian Greenback resume decrease. As I highlighted a number of weeks in the past, the Canadian Greenback is affected by a latest shift within the Financial institution of Canada’s coverage, making it all of the extra possible a brand new headwind will work to strain CAD.
CAD/JPY Value Forecast
To that finish, resistance at 83 turns into the extent to observe as value motion unfolds. Additional, the late-October swing excessive may be thought of an space of invalidation for shorter-term bearish positions on CAD/JPY. One other focal point resides round 81 – a zone that provided modest help in Could and June. Whereas noteworthy help exists previous to the 81 spot value, a latest break beneath hints on the weak point of the world. Thus, one other profitable take a look at of the 200-day shifting common would quantity to an encouraging signal for additional CAD/JPY weak point.
CAD/JPY Value Chart: Every day Time Body (April 2019 – November 2019) (Chart 1)
As value motion unfolds, observe @PeterHanksFX on Twitter for updates and evaluation on this commerce setup.
–Written by Peter Hanks, Junior Analyst for DailyFX.com
Contact and observe Peter on Twitter @PeterHanksFX