Featured Trade: CAD/JPY another potential down leg looms

Watch the 81.16 key short-term resistance on CAD/JPY.

Short-term technical outlook on CAD/JPY (Mon 17 Jun)

click to enlarge charts

Key elements

  • The minor corrective up move from 01 Jun 2019 low of 79.93 has been damaged through the bearish break below its former ascending support on 12 Jun 2019.
  • Momentum remains negative as indicated by the daily and 1-hour RSI oscillators.
  • It is likely that the CAD/JPY is now likely undergoing another minor bearish downleg within a medium-term down move sequence in place since 01 Mar 2019 high of 84.60.
  • Key short-term resistance stands at 81.16 which is defined by the minor descending resistance in place since 11 Jun 2019 high and the 23.6% Fibonacci retracement of the recent decline from 11 Jun high to last Fri, 14 Jun U.S. session low of 80.86.
  • The significant near-term supports rest at 80.50 and 80.25 (also a Fibonacci expansion cluster).

Key Levels (1 to 3 days)

Pivot (key resistance): 81.16

Supports: 80.50 & 80.25

Next resistance: 82.05


If the 81.16 key short-term pivotal resistance is not surpassed, the CAD/JPY is likely to shape another potential downleg to target the next near-term supports at 80.50 and 80.25 in the first step.

However, an hourly close above 81.16 invalidates the bearish scenario for an extension of the corrective rebound to retest the key medium-term resistance at 82.05.

Charts are from eSignal

Disclaimer: The information on this web site 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. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account