- CAD/JPY sets well defined weekly & yearly opening ranges
- Updated targets & invalidation levels
- Event Risk on Tap This Week
Chart Created Using FXCM Marketscope 2.0
Technical Outlook: CADJPY has continued to trade within the confines of a descending median-line formation dating back to 2014 with the pair setting a well-defined 2016 yearly opening range just above trendline support dating back to the 2009 low. The broader short-bias remains in focus while sub 87.43 where the August lows converges on the 50% retracement of the 2009 advance (broader bearish invalidation). Interim support rests at the low-day close at 80.60 backed by the range lows at 78.93.
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Notes: The weekly opening range is taking shape just below trenline resistance extending off the monthly highs and we’ll be looking for a break to validate our near-term directional bias. If the relief rally off the low is complete, look for a break of the lows to target support objectives at 81.38, 80.88 & the low-day close at 80.60. A close below this level keeps the short bias in play targeting susbsequent support targets at 80.17, 79.27 and the yearly low at 78.93.
Soft resistance is eyed at 82.60 backed by trendline resistance at ~83.00. A breach above 83.49 invalidates the immediate short-bias with such a scenario targeting the 61.8% retracement at 84.06. Subseqeunt resistance objectives eyed at 84.70 & 85.20. A quarter of the daily average true range (ATR) yields profit targets of 43-47pips per scalp. Added caustion is warranted heading into the end of the week with both US & Canadian inflation figures on tap on Friday.
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Relevant Data Releases
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---Written by Michael Boutros, Currency Strategist with DailyFX