CAD/JPY Stalls, Will the Downtrend Resume?

Canadian Greenback (CAD/JPY) Worth Forecast:

Canadian Greenback Outlook: CAD/JPY Stalls, Will the Downtrend Resume?

The Canadian Greenback loved a modest rally versus the Japanese Yen final week, driving from 81.6 to 82.four in a sequence of quiet buying and selling classes. Now, the pair nears resistance that resides across the 83 degree and a substantial breakdown within the value of crude oil could possibly be the catalyst wanted to see the Canadian Greenback resume decrease. As I highlighted just a few weeks in the past, the Canadian Greenback is affected by a current shift within the Financial institution of Canada’s coverage, making it all of the extra doubtless a brand new headwind will work to strain CAD.

CAD/JPY Worth Forecast

To that finish, resistance at 83 turns into the extent to look at as value motion unfolds. Additional, the late-October swing excessive will be thought-about an space of invalidation for shorter-term bearish positions on CAD/JPY. One other focal point resides round 81 – a zone that supplied modest assist in Could and June. Whereas noteworthy assist exists previous to the 81 spot value, a current break beneath hints on the weak point of the world. Thus, one other profitable check of the 200-day transferring common would quantity to an encouraging signal for additional CAD/JPY weak point.

CAD/JPY Worth Chart: Each day Time Body (April 2019 – November 2019) (Chart 1)

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