CADJPY 94.50 - Line in the Sand

Talking Points

• CADJPY near-term focus higher- weekly opening range in focus
• Updated targets & invalidation levels
• Event Risk on Tap This Week

CADJPY Daily

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

• CADJPY near-term focus higher above the monthly open- Reversal confirmation pending
• Support & bullish invalidation into 94.50/59
• Break lower targets 93.73 (March Low) & 93.00
• Resistance up into the ML / 96.77
• Momentum divergence into resistance trigger break- constructive
• RSI breach above 50 would be bullish
• Event Risk This Week: Limited

CADJPY 30min

Notes: The pair came off support early in the week with today’s reversal off the 96-handle now testing the lower median-line parallel of the proposed pitchfork off the monthly lows. The focus remains weighted to the topside while within this formation with a break sub 94.50/58 needed to put the short-side back into play (bullish invalidation).

We’ll look to buy pullbacks / RSI resistance triggers while above key support with a breach above the ML / 95.80 targets subsequent resistance objectives at 96.16 & 96.64/77. A quarter of the daily average true range yields profit targets of 19-22pips per scalp. Event risk is limited out of Canada & Japan this week so we’ll keep a close eye on key themes coming out of the Asia/Pacific region as it continues to impact global market sentiment with Chinese retail sales & industrial production on tap tomorrow.

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Relevant Data Releases

Other Setups in Play:

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---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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