FxWirePro: CADJPY Weekly Outlook
Ichimoku Analysis (Weekly chart)
CADJPY is trading higher for a fourth consecutive week and soared more than 5% on broad-based yen weakness. The surge in US bond yield is putting pressure on the yen. USDJPY is holding well above 200- W EMA, break above 109.02 (200 –W MA) confirms trend continuation. The Canadian dollar is performing better against the US dollar despite broad-based US dollar buying. WTI crude oil hits two years high at $67.94 after the Saudi Arabian main crude site was attacked by a drone. The overall trend is bullish as long as support $62.50 holds. 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 86.30 (38.2% fib). Any indicative surge past targets 87.62/88.
The significant support is at 85, any decline below that level will drag the pair down till 84.70/84.05/83.25. Significant trend continuation only below 83. A dip till 80/79.60 is possible.
It is good to buy on dips around 85 with SL around 84 for the TP of 88.