CAD/JPY Trade Idea

• Major support- 84.50 (trend line joining  82.90 and 83.89)
   
• Major resistance – 85.50 (May 31st high)
   
• CAD/JPY has declined after making a high of 84.85 yesterday on weaker than expected Canadian GDP data.
   
• Canada’s GDP has grown at a 2.4% annualized rate in the first quarter compared to forecast of 2.9%.
   
• The pair has broken major support of 84.50 and declined till 83.53 at the time of writing.
   
• Short term trend is weak as long as resistance 84.95 (200 day 4H MA) holds. Any slight bullishness only above this level. Break above 84.95 will take the pair till 85.50.
   
• Overall trend reversal only above 85.50.
   
• On the lower side break below 83.89 (May 27th low) will drag the pair till 83/82.25 in short term.

It is good to sell on rallies around 84.20 with SL around 84.95 for the TP of 83/82.25

R1-84.60

 R2-84.95

R3-85.50

Support

S1-83.60

S2-82.90

S3-82.25