Fading risk sentiment has dragged on the CADJPY over the last six sessions, and has led the pair to break below major support levels this week.
Currency Pair: CAD/JPY Chart: 60 Min Charts Short-Term Bias: Short
Analysis Update
The CADJPY has moved in our favor over the past few hours, but I anticipate the pair to hold within its current range through the rest of the trading session. The divergence between the pair and the 120 SMA suggests that the pair may bounce higher over the next few hours, but I expect the underlying downtrend to lead the pair lower over the next few trading sessions. As risk sentiment remains weak, we may see the pair break below its current range to test the 6/7/05 low of 85.27 for support over the following week, but the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.
Analysis
Fading risk sentiment has dragged on the CADJPY over the last six sessions, and has led the pair to break below major support levels this week. After falling to an intraday low of 87.63 during the Asia session, the pair has bounced back to hold near 89.80, but I anticipate the downward momentum to lead the pair lower over the next few days. Choppy price action suggests that the pair may continue to bounce around in its current range between 88.00 and 92.00 for the remainder of the trading day, but I expect the pair to end the day near its intraday low. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.
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