FxWirePro- Sell CADJPY on rallies

FxWirePro- CADJPY trend line break out  (chart of the day)

CADJPY gained momentum after upbeat Canada CPI data. It hit an intraday high of 110.72 at the time of writing and is currently trading around 103.69.

On November 19, 2024, Statistics Canada reported that the annual inflation rate rose to 2.0% in October, up from 1.6% in September, mainly due to a smaller drop in gasoline prices. Monthly, the Consumer Price Index (CPI) increased by 0.4%, exceeding expectations of a 0.3% rise. Core inflation measures remained stable, with the CPI excluding gasoline holding at 2.2%. Food prices also rose by 2.7% year-over-year, higher than September's 2.4%. This data is significant for the upcoming Bank of Canada interest rate decision, suggesting a lower chance of a major rate cut.

Technicals-

The pair is trading above 34- and 55 EMA in the 4-hour chart.

The near-term resistance is around 112, a breach above targets 112.35/114.85/116.05/118/118.65. The immediate support is at 110.50, any violation below will drag the pair to 109.25/107.99.

Indicator ( 4 hour-chart)

CCI (14)-  Bullish

ADX- neutral

 All indicators confirm a mixed trend.

It is good to sell on rallies around  111 with SL around 112 for a TP of 108.