Market News & Analysis
CADJPY bounced off from support with positive momentum
Kelvin Wong November 27, 2019 6:29 PM
Medium-term technical outlook on CAD/JPY
click to enlarge charts
Key Levels (1 to 3 weeks)
Intermediate support: 81.90
Pivot (key support): 81.40
Resistances: 83.45, 84.80 & 85.20
Next supports: 80.10 & 78.80/20
Directional Bias (1 to 3 weeks)
Bullish bias in any dips above 81.40 key medium-term pivotal support for another round of potential upleg to retest the recent 29 Oct swing high area of 83.45 before targeting 84.80 next.
On the other hand, a break with a daily close below 81.40 invalidates the bullish scenario for a choppy push down towards 80.10 support (03 Oct 2019 swing low & close to 61.8% Fibonacci retracement of the on-going up move from 26 Aug low to 29 Oct 2019 high).
- The CAD/JPY cross pair has started to evolve into a medium-term ascending channel in place since 26 Aug 2019 low within a long-term secular range configuration in place since Apr 1995.
- Recent price action has staged a rebound from the medium-term ascending channel support at 81.40 with positive momentum. The daily RSI oscillator has bounced off from a parallel support at the 40-level coupled with a bullish divergence seen in the 4-hour RSI oscillator at its oversold region.
- The cross pair has also staged a bullish breakout yesterday, 26 Nov from its former minor descending resistance from 29 Oct high now turns pull-back support at 81.90.
- The 84.80 significant medium-term resistance is defined by the upper boundary of the medium-term ascending channel and a Fibonacci expansion cluster.
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.