Loading...
by Darius Anucauskas

Could CAD/JPY Recover Some Of Its Lost Grounds?

After declining quite sharply in the first days of October, it looks like CAD/JPY started consolidating and is now forming a range between the 85.70 and 86.45 levels. At the time of this analysis, the pair is testing the upper side of the range. For now, we will stay put and wait for a clear break of any of the sides first, before we assume a further continuation in the direction of the break.

If the upper side of the aforementioned range at 86.45 gets broken, this could invite more bulls to the table as it could open the path towards higher resistance levels like the 87.00 obstacle, marked by the lows of the 8th and the 9th of October. If the buying continues and that obstacle is not able to hold the pair down, then this could lead towards the 87.45 barrier, marked by the high of the 10th of October.

The RSI has bottomed near 20 and moved higher from there and now sits just slightly above 50. The MACD is also moving higher, after bottoming on the 11th of October, is above the trigger line, but still remains below zero. Judging from what we see in our indicators, they are somewhat in support of the upside, but still have an element of the doubt in them, as they haven’t made a strong shift into the bullish territory yet.

On the downside, in order for us to get comfortable with lower levels, we would wait until the pair moves below the 85.70 barrier, which is the lower side of the previously mentioned range. Only then we will aim for the next potential level of support at 85.45, a break of which could set the stage for a test of the 85.10 hurdle, which was the low of the 12th of September. If the bears remain strong, then we could see CAD/JPY traveling all the way to the 84.65 level, marked by the inside swing high of the 7th of July.

CADJPY 4hour

Disclaimer:

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Brokers, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Brokers analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyzes and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyzes and must therefore be viewed by the reader as marketing information. JFD Brokers prohibits the duplication or publication without explicit approval.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.

Copyright 2018 JFD Brokers Ltd.

 

WEEKLY FINANCIAL NEWSLETTER
RIGHT INTO YOUR MAILBOX!
SUBSCRIBE TO JFD'S STRATEGIC REPORT