Medium-term technical outlook on CAD/JPY
click to enlarge charts
Key Levels (1 to 3 weeks)
Intermediate support: 81.90
Pivot (key support): 81.40
Resistances: 83.45, 84.80 & 85.20
Next supports: 80.10 & 78.80/20
Directional Bias (1 to 3 weeks)
Bullish bias in any dips above 81.40 key medium-term pivotal support for another round of potential upleg to retest the recent 29 Oct swing high area of 83.45 before targeting 84.80 next.
On the other hand, a break with a daily close below 81.40 invalidates the bullish scenario for a choppy push down towards 80.10 support (03 Oct 2019 swing low & close to 61.8% Fibonacci retracement of the on-going up move from 26 Aug low to 29 Oct 2019 high).
- The CAD/JPY cross pair has started to evolve into a medium-term ascending channel in place since 26 Aug 2019 low within a long-term secular range configuration in place since Apr 1995.
- Recent price action has staged a rebound from the medium-term ascending channel support at 81.40 with positive momentum. The daily RSI oscillator has bounced off from a parallel support at the 40-level coupled with a bullish divergence seen in the 4-hour RSI oscillator at its oversold region.
- The cross pair has also staged a bullish breakout yesterday, 26 Nov from its former minor descending resistance from 29 Oct high now turns pull-back support at 81.90.
- The 84.80 significant medium-term resistance is defined by the upper boundary of the medium-term ascending channel and a Fibonacci expansion cluster.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.