FxWirePro: CADJPY forms a bearish engulfing pattern, good to sell on rallies

Candlestick pattern- Bearish engulfing candlestick

CADJPY has halted its 4-weeks of bullishness and shown a minor decline. The pair was trading extremely higher and jumped more than 250 pips on the strong Canadian dollar. It was one the best performer in the previous month especially against USD, gained more than 2%.

The WTI crude oil price is trading higher and jumped more than $1 after better than expected US API crude inventory data. It shows a strong build-up 4.26 million barrels for the week compared to a forecast of 1.515 million barrels.

Technically, major support is around 81.75 (23.6% fib), any violation below will drag the pair to the next level 81/79.80.

The near-term resistance is around 83.55 high made on Oct 28th, 2019, breaks over targets 83.97 (200-W MA). Major trend reversal can be seen only if pair closes above 83.97, a jump till 85/85.20 likely.

It is good to sell on rallies around 82.95-83 with SL around 83.55 for the TP of 81.80/81.