Featured Trade CADJPY bullish breakout from major resistance

Short-term technical outlook on CAD/JPY (Mon 08 Jul)

click to enlarge charts

Key elements

Since its 31 May 2019 low of 79.94, the CAD/JPY cross pair has staged an up move of 270 pips and broke above a major descending trendline resistance in place since 03 Oct 2018 high on last Thurs, 04 Jul now turns pull-back support at 82.40.
Medium to short-term momentum remains positive as indicated by the readings from both the daily and hourly RSI oscillators.
The next significant intermediate resistance stands at the 83.80/84.00 zone which is defined by the range top from 15 Mar/17 Apr 2019, the upper boundary of the minor ascending channel from 01 Jun 2019 and a Fibonacci expansion cluster.

Key Levels (1 to 3 days)

Intermediate support: 82.65

Pivot (key support): 82.40

Resistance: 83.80/84.00

Next support: 81.60

Conclusion

If the 82.40 key short-term pivotal support holds, the CAD/JPY is likely to stage a further potential uppleg to target the 83.80/84.00 intermediate resistance zone in the first step.

However, a break with an hourly close below 82.40 negates the bullish tone for a deeper pull-back to test the medium-term support at 81.60 (also the ascending trendline from 01 Jun 2019 low).

Charts are from eSigna

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.