Loading...
Traders Beware!
Warning!

Fraudulent websites posing to have a connection with JFD

Please be aware of fraudulent websites
posing as JFD's affiliates and/or counterparties

More information
by Charalambos Pissouros

CAD/JPY Surges. Is More Upside in the Works?

CAD/JPY surged yesterday, breaking two resistance (now turned into support) barriers in a row. The pair is trading above a tentative upside support line drawn from the low of August 25th, and at the time of writing, it looks to be heading towards the peak of October 29th, where a clear break would drive the rate in territories last tested in April 23rd. So, having all that in mind, we would consider the near-term outlook to be cautiously positive.

A clear and decisive break above the high of October 29th, at around 83.56 may encourage the bulls to drive the battle all the way up to the peak of April 17th, at around 84.35. They may decide to take a break after testing that zone, thereby allowing the rate to correct back down. However, as long as it stays above the aforementioned upside line, we would see decent chances for another leg north and another test near 84.35. If that level gets broken this time, the advance may get extended towards the 85.17 barrier, which is fractionally below the high of March 1st.

Taking a look at our daily oscillators, we see that the RSI lies above 50, pointing up, while the MACD stands slightly above both its zero and trigger lines, pointing up as well. Both indicators detect upside speed and support the notion for this exchange rate to continue drifting north for a while more.

On the downside, we would like to see a clear dip below 81.75 before we start examining the bearish case.  Such a move would confirm the break below the pre-mentioned upside support line and could initially aim for the low of November 21st, at around 81.28. Another move lower could extend the slide towards the 80.80 zone, the break of which could set the stage towards the psychological zone of 80.00.

CAD/JPY daily chart technical analysis

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. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD 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 analyses 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 analyses and must therefore be viewed by the reader as marketing information. JFD 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. 78% 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 2019 JFD Group Ltd.

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