Talking Points
- CADJPY breaks June opening range low / support after failing to fill Sunday gap
- Updated targets & invalidation levels
- Event Risk on Tap This Week
CADJPY Daily
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
- CADJPY breaks June opening range lows / median-line support- bearish
- Interim support confluence into 97.54, break targets key support zone into 94.43
- Interim Resistance at 98.80/90-bearish invalidation
- Breach above resistance targets the upper MLP / Sunday uncovered gap
- Daily RSI approaching 40 support- break below would be bearish
- Event Risk Ahead: Japanese Tankan Index tonight & U.S. Nonfarm Payrolls on Thursday
CADJPY 30min
Notes: The CADJPY failed to fill the Sunday open gap before breaking below confluence Fibonacci support at 98.80/90. The focus remains weighted to the short-side while below this level with today’s decline finding support at the lower median-line parallel, just above the 38.2% retracement at 97.53. Momentum divergence into the lows leaves the pair at risk for a rebound near-term, but we’ll be looking to sell rallies / support triggers while below the ML off the highs.
Bottom line: looking for this rebound to offer short entries with a break below near-term support targeting subsequent objectives at 96.80 & 96.42. A breach above the 99-handle invalidates our near-term outlook with such a scenario targeting the upper median-line parallel backed by the uncovered gap at 100.48. A quarter of the daily average true range yields profit targets of 21-24pips per scalp.
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Relevant Data Releases
Other Setups in Play:
- Webinar: Greece Charges Euro Gap & Snapback- USDJPY Remains at Risk
- USDJPY Runs Into Key Resistance- Short Scalps Favored Sub 124.35
- GBPJPY Opening Range Setup- Long Scalps Vulnerable Sub 195.50
- GBPUSD Pullback to Offer Favorable Long Entries- 1.57 Key Support
- USD Shorts Remained Favored on FOMC Sell Off- Key Support 11,731
---Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michaelon Twitter @MBForex, contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list
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