News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bearish
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Germany 30: -0.02% US 500: -0.09% Wall Street: -0.10% France 40: -0.13% FTSE 100: -0.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/W40Vx8cpJi
  • Get your Thursday market update from @DailyFX Chief Strategist @JohnKicklighter 👇. He covers the US Presidential debate and more! https://t.co/9s7A2Y7Az4
  • US Eight-Week Bills Draw 0.090% Primary Dealers Awarded: 49.6% Indirect Bidders Accepted: 39.6% Direct Bidders Accepted: 10.8% B/C Ratio: 3.51
  • If the market's speculative leaders and its once-leading speculative catalysts can't reinvigorate a well-established bull trend, something significant is anchoring us
  • curious to see the results on this poll 👇 https://t.co/Yd0YgmUky5
  • We are now less than two weeks away from the US Presidential Election 🇺🇸. What do you think the #FX market impact will be?
  • Pelosi says 'just about there' on relief deal - BBG
  • $CSX - the rail shipping company that I consider a good proxy to growth - managed announced its $5 billion share buyback last night, which is cat nip to stocks, and it too can't follow through on its opening gap
  • Tesla offered up an earnings beat last night and the speculative favorite that is up 412% (!) on the year is spinning its tires today in the aftermath
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.19% 🇨🇦CAD: -0.03% 🇯🇵JPY: -0.21% 🇦🇺AUD: -0.26% 🇪🇺EUR: -0.34% 🇬🇧GBP: -0.52% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/UHRqYP6B9B
Canadian Dollar Forecast: CAD/JPY Hovers Over Major Support

Canadian Dollar Forecast: CAD/JPY Hovers Over Major Support

2020-09-30 21:30:00
Peter Hanks, Analyst
Share:

CAD/JPY Price Outlook:

Advertisement

Canadian Dollar Forecast: CAD/JPY Hovers Over Major Support

Secondary covid lockdowns, political uncertainty and seasonality have eaten away at risk appetite in September, leading to declines in growth-sensitive markets like US equities and the Canadian Dollar. While the Canadian Dollar has not suffered across all crosses, weakness has been widespread when it is paired with a counterpart like the US Dollar, Euro or Japanese Yen which are less reliant on economic growth.

CAD/JPY Price Chart: Daily Time Frame (March 2020 - September 2020)

CAD/JPY price chart

Of USD/CAD, EUR/CAD and CAD/JPY, only Japan has avoided another round of covid lockdowns, a factor that may have eroded growth forecasts elsewhere. Unsurprisingly then, CAD/JPY has suffered throughout September, falling from resistance near the 81.50 mark to the 200-day moving average near 78.83. After probing the line for days, the pair has only been able to stay above the level after employing the assistance from potential support at 78.45 to 78.00.

Forex for Beginners
Forex for Beginners
Recommended by Peter Hanks
Forex for Beginners
Get My Guide

Suffice it to say, CAD/JPY appears exceedingly weak at this stage and runs the risk of further declines. To be sure, the 200-day moving average will attempt to keep price afloat, but the line in the sand at this point in time may rest at the 78.00 mark. If pierced, CAD/JPY might extend lower still as major support is almost nonexistent until 76.39.

Top 8 Forex Trading Strategies and their Pros and Cons

On the other hand, a renewal in risk appetite – as hinted at over the last few sessions – could deliver the lifeline necessary to revive CAD/JPY at this juncture. If bulls return, initial resistance may exist at the 79.26 mark. Still, relying on an abrupt recovery rally is rather presumptuous. Either way, the positioning of the pair creates an intriguing landscape for trade set ups, primarily those which cater to break out trading. In the meantime, follow @PeterHanksFX on Twitter for updates and analysis.

--Written by Peter Hanks, Strategist for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES