Canadian Dollar & Euro vs JPY: EUR/JPY & CAD/JPY Face Key Resistance
EUR /JPY and CAD/JPY Technical Analysis
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CAD/JPY, EURJPY – Price Action
On Dec 2, EUR/JPY printed 121.01 -its highest level in nearly four weeks. Later, the price declined and settled below 120.00 handle. On Friday, the pair closed the weekly candlestick with 0.4% loss. Similarly, CAD/JPY rallied last week to a multi-week high at 82.76. However, the price slipped after then closed the weekly candlestick in the red with a 0.6% loss.
This week the Relative Strength Index (RSI) crossed above 50 on both pairs, then remained flat after highlighting weak buyers and weaker sellers.
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EUR/JPY Daily PRice CHART (Sep 2, 2017 – DEC 12, 2019) Zoomed Out
EUR/JPY Daily Price CHART (July 1 – DEC 12, 2019) Zoomed in
Looking at the daily chart, we notice since on Dec 6 EUR/JPY rebounded from the 50-day average providing a bullish signal. The pair have remained moving in the same trading zone 119.78 -121.19 since Nov 22.
Thus, the price could be on the way for a test of the high end of the zone. Further close above 121.25 may encourage more market’s participants to end current sideways move and push EURJPY towards 122.52. Although, this rally could weaken at the weekly resistance levels marked on the chart as some buyers could take profit at these points.
On the other hand, any failure in closing above the high end of the zone would reflect buyer’s hesitation. This could lead more buyers to exit the market and reverse the price’s direction towards the low end of the zone.
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CAD/JPY Daily PRice CHART (FEB 20, 2018– DEC 12, 2019) Zoomed Out
CAD/JPY Daily PRice CHART (Sep 23 – DEC 12, 2019) Zoomed In
From the daily chart, we notice on Nov 21 CAD/JPY rebounded from 81.28 then started uptrend move creating higher highs with higher lows. Yesterday CAD/JPY rallied to a higher trading zone 82.31 – 82.72-76. Additionally, the pair closed above the 50-day average generating another bullish signal.
A close above 82.76 highlights more bullish market and opens the door for buyers to rally CADJPY towards 83.65. Nevertheless, the weekly resistance levels underlined on the chart (zoomed in) should be kept in focus.
On the other hand, a close below the low end of the zone could be on the back of buyer’s taking profit. This could lead CADJPY towards 81.64. Although, the weekly support levels underscored on the chart should be watched closely.
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Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.