FxWirePro: CAD/JPY’s Interim Bulls Seem Deceptive, Major Downtrend Still Imminent On Head & Shoulder Pattern – Trade & Hedging Setup
FxWirePro: CADJPY Short term outlook
CADJPY is trading higher for 2nd consecutive week and jumped more than 250 pips on weak yen. The yen was trading lower against all majors on slight optimism in US-China trade talks and positive Brexit deal. USDJPY has broken major resistance 108.50 and any break above 109.30 confirms further bullishness.
USDCAD hits 5-week low and any break below 1.3130 targets 1.3070/1.3020. Canadian manufacturing sales came at 0.8% compared to -1.3% the previous month. The slight jump in crude oil prices and positive economic data is supporting CAD.
On the lower side, near term support is around 81.85 and any violation below will drag the pair down till 81.20/80.67.
The near-term resistance is around 82.82 and any convincing break above will take the pair to the next level till 83.25/84.05.
It is good to buy on dips around 82.50-55 with SL around 81.85 for the TP of 84.05.