CADJPY – Challenging Key Resistance Levels

CADJPY – Challenging Key Resistance Levels

CADJPY – Challenging Key Resistance Levels

After last week’s strong gains, Yen pairs are due for a correction. They have run up too far too fast and with no major U.S. economic reports on the calendar, a correction is likely. We’ve decided to buy the Yen against the Canadian dollar because the overall strength of the U.S. dollar should keep oil prices under pressure. There are also no major Canadian economic reports until the end of the week.

Technically, there’s significant resistance above current levels. The 50-day SMA sits right above 82.00 and that coincides with the 23.6% Fibonacci retracement of the 2007 to 2009 decline. Beyond that is 61.8% Fib retracement of the 2009 to 2014 rally at 82.55. Support is at 80.

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