Short-term technical outlook on CAD/JPY (Mon 17 Jun)
click to enlarge charts
- The minor corrective up move from 01 Jun 2019 low of 79.93 has been damaged through the bearish break below its former ascending support on 12 Jun 2019.
- Momentum remains negative as indicated by the daily and 1-hour RSI oscillators.
- It is likely that the CAD/JPY is now likely undergoing another minor bearish downleg within a medium-term down move sequence in place since 01 Mar 2019 high of 84.60.
- Key short-term resistance stands at 81.16 which is defined by the minor descending resistance in place since 11 Jun 2019 high and the 23.6% Fibonacci retracement of the recent decline from 11 Jun high to last Fri, 14 Jun U.S. session low of 80.86.
- The significant near-term supports rest at 80.50 and 80.25 (also a Fibonacci expansion cluster).
Key Levels (1 to 3 days)
Pivot (key resistance): 81.16
Supports: 80.50 & 80.25
Next resistance: 82.05
If the 81.16 key short-term pivotal resistance is not surpassed, the CAD/JPY is likely to shape another potential downleg to target the next near-term supports at 80.50 and 80.25 in the first step.
However, an hourly close above 81.16 invalidates the bearish scenario for an extension of the corrective rebound to retest the key medium-term resistance at 82.05.
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.