FxWirePro: CADJPY Daily Outlook

Ichimoku Analysis (Hourly chart)

Tenken-Sen- 82.431

Kijun-Sen- 82.431

CADJPY is consolidating in a narrow range between 82.71 and 81.96 for the past three days. The Canadian dollar was one of the best performers in past one month on upbeat market sentiment and surging crude oil prices. According to Energy Information Administration (EIA), US inventory has declined by 6.6 million barrels for the week ended Feb 5th compared to an estimate of -0.9M.  WTI crude hits a multi month high on coronavirus vaccination and tight supply. The short term trend of CADJPY is bullish as long as support 81.80 holds.

On the higher side, the pair is facing resistance at 83.15 (200-W MA).  Any indicative surge past targets 84/84.95.

The significant support is at 81.80, any decline below that level will drag the pair down till 81.40/81/80.55/80. Significant trend continuation only below 80. A dip till 79.60/79.23. On the higher side, near-term resistance is around 83.15, any violation above that level targets 84/85.

It is good to buy on dips around 82.25-30 with SL around 81.80 for the TP of 84/84.68.