Do the lows of the last few days mark a turning point for the CADJPY?
The CADJPY pair has been trending downward recently. On Wednesday, the CADJPY pair gave way at the start of trading in London, but Monday’s low could not be broken. Currently, the short-term downward trend that started in mid-April is still intact. The price is below its trend line. With a price above ¥81.40, the market reached a structural level that could be decisive for further development in the coming days.
If the market continues to attempt an upward move, the downward trend line, followed by the ¥82,00 zone, could provide the first resistance for the market. If the bulls then take control, there may be further resistance around ¥83.35. If the market pierces this level as well, the bulls may encounter more resistance in the ¥84.75 area.
However, if the bears push the market below the lows of the last three days, the area around ¥80.27 could provide the first support for the currency pair. Further support may come in the zones around ¥78.95 and ¥77.30.
The MACD oscillator has continued to move down since the MACD line crossed with its trigger line. The first signs of a weakening of the movement may be visible as both lines could move toward each other.
Traders who are unsure about the current trade with the U.S. dollar will often turn to the Canadian Dollar. This currency, too, can be influenced by crude oil prices because of Canada’s not-inconsiderable energy exports. Investors should be aware of this.
CADJPY Daily Chart | Source: ActivTrader
Written by Daniel Schuetz, External Analyst, ActivTrades
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