No clear direction for the CADJPY. Will the bears or the bulls take charge?
This week, the CADJPY, which had been on a rising trend since January, had a small correction. The bulls could not break through the critical structural band between 83.40 and 83.80. This range can be decisive for further rising prices.
The MACD indicator has crossed its trigger line from up to down, but the gap between both lines is marginal. There is a slight tendency for the MACD line to move downwards from its trigger line, which would be a bearish sign.
Today at 12:30 GMT, the data for both Retail Sales and Consumer Price Index Core, will be released, and this economic data could bring momentum to the market.
On yesterday’s trading day, the market has reached a small structural level in the area of 82.70, which could provide the first support to the market. The next structural support could wait in the field of 82.25.
If the bears continue to drive the market lower, the next support may be in the 81.40 and 80.44 ranges. If the market falls through here as well, the chart will blur, and a new valuation will be needed.
If, however, the bulls can take over the market again, the structural band between 83.80 and 83.40 must first be overcome. The December high in the 84.80 range could then form the next significant resistance. If the market makes it through here as well, there could be further resistance in the 85.45 and 86.20 areas.
CADJPY Daily Chart | Source: ActivTrader
Written by Daniel Schuetz, External Analyst.
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