FxWirePro: EUR/JPY slips lower from fresh four-month high, overbought conditions keep scope for pullback
FxWirePro- USDCAD trades above 1.2800 on risk aversion, good to buy on dips
Ichimoku analysis (4-hour chart)
The pair was one of the best performers and surged more than 300 pips on board-based US dollar buying. The upbeat US economic data and surging US Treasury yields are supporting the US dollar index. Markets eye US Fed monetary policy data for further direction. It hits a high of 1.28190 and is currently trading around 1.28116. The overall trend remains bullish as long as support 1.2720 holds.
The reasons for the jump are
The decline of more than 3.5% in WTI crude oil price due to risk aversion.
The spread of delta variant coronavirus.
Intraday Trend –Bullish
The near-term resistance is around 1.2820, a breach above targets 1.2860/1.2900/1.29490 (Aug 20th, 2021). On the lower side, immediate support stands around 1.2760; violation below will take the pair down to the next level 1.2720/1.2660.
It is good to buy on dips around 1.2780 with SL around 1.2720 for a TP of 1.2950.