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FxWirePro: Sell CADJPY on rallies

Candlestick pattern- Bearish engulfing candlestick

 

 

As per our analysis, CADJPY continues to trade lower for 3rd consecutive days and declined more than 100 pips. The overall trend is still weak as long as resistance 83.55 holds. The Canadian dollar was one the worst performer in this month as weak jobs data will increase the chance of a rate cut by BOC in the future.

 

USDJPY also halted its bullish trend after forming a minor top around 109.48. Any break beneath 108.60 confirms minor weakness.

 

Technically, major support is around 81.75 (23.6% fib), any violation under 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 84.03/84.35. Major trend reversal can be seen only if pair closes above 84.35, a jump till 85/85.20 likely.

 

It is good to sell on rallies around 82.25-30 with SL around 82.70 for the TP of 81.

By Rangarajan Hariharan
  • Market Data
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