FxWirePro: CAD/JPY downside capped by 50 –day MA, good to buy on dips

• CAD/JPY has jumped sharply till 89.33 after breaking trend line resistance at 88.65roken trend line resistance at 88.67 and jumped till 89.33. The main reason for jump in Canadian dollar against all majors was due to strong crude oil price. The pair jumped 200 pips from the low of 87.32 on Dec 18th 2017. It hits high of 89.33 and is currently trading around 89.10.
   
• Canadian GDP data came unchanged in Oct at 0% compared to forecast of 0.2%. A slight increase in the growth of service sector was offset by decline in goods- producing industries.
   
• Crude oil price rose almost $1.80 in previous week on declining crude inventories and supply disruption in Forties North Sea. The commodity jumped till $58.62 and is currently trading around $58.50.
   
• The near term intraday major resistance is around 89.22 (Dec 5th 2017 high) and any convincing break above will take the pair to next level till 90/90.77.
   
• On the lower side, near term support is around 88.54 (50- day MA) and any violation below will drag the pair to next level till 88.00 (daily Kijun-Sen)/87.13.

It is good to buy on dips around 88.65-70 with SL around 88 for the TP of 90/90.75.