CAD/JPY Bearish Below March High; Break Sub-84.57 to Fuel Losses
- CADJPY Rebound at risk- on the lookout for short-triggers
- Resistance at 86.21/ Broader Bearish invalidation at March high
- Updated targets & invalidation levels
Chart Created Using FXCM Marketscope 2.0
Technical Outlook:Earlier in the month I highlighted the reversal off a key confluence resistance at basic trendline extending off the June highs. The decline extended into the low-week close (daily reversal close) at 81.69 before rebounding. The near-term advance is once again approaching key areas of resistance with our broader outlook weighted to the short-side while below the 2016 high-day close at 86.53 with a breach above the March high needed to shift the focus higher. Interim support rests with the lower median-line parallel / 84.55 with a break below this region targeting the 50-line (red) & the 81.19. Critical support rests at 80.60 – a level defined by the 2016 (January AND February) low day closes.
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Notes: CADJPY has been within the confinues of a well-defined ascending median-line formation with the pair failing to break above last week’s highs before pulling back. Immeidate support confluence rests at 84.75 with a break sub 84.57 needed to validate the reversal. Subsequent support objectives rest at 84.17, 83.75 & key near-term support at 83.23/44.
A breach above basic trendlinea resistance off the March high puts us neutral with such a scenario eyeing topside resistance levels at 85.79 & 86.21 – (areas of possible short entries). A quarter of the daily average true range (ATR) yeilds profit targets of 27-30 pips per scalp. Continue tracking this setup and more throughout the week- Subscribe to SB Trade Desk and take advantage of the DailyFX New Subscriber Discount!
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Relevant Data Releases
Other Setups in Play:
- USDOLLAR Rebound at Risk Ahead of CPI- 11905 Resistance
- AUDJPY Rebound Eyes Key Near-term Resistance- Bearish Sub-84.72
- EUR/AUD Reversal Testing Initial Support - Bearish Sub-1.5075
- GBP/USD Scalp Targets Ahead of UK CPI- Bullish Invalidation 1.4175
- Webinar: USD in Free Fall- Key Crosses in Focus this Week
---Written by Michael Boutros, Currency Strategist with DailyFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.