FxWirePro: Sell CADJPY on rallies

Candlestick pattern- Bearish engulfing candlestick

As per our analysis, CADJPY continues to trade lower after showing a  jump till 83.10. The Canadain dollar is one of the worst performers previous especially against USD after weak employment data. The economy unexpectedly lost 1800 jobs in Oct compared to a forecast of 14300, first decline since Jul 2019.

The WTI crude oil price is trading in a narrow range between $57.84 and $55.75 for the past 5 days. The inventory has built up by 7.9M in the previous week compared to an estimate of 1.9M, which is slightly negative for oil.

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 82.55-60 with SL around 83.20 for the TP of 81.