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CADJPY: Sellers Need to Defend 83.80

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CADJPY has worked out well for us so far this year.

It all started when the pair was approaching former channel support as new resistance at 84.50. You can see that commentary here.

The Canadian dollar cross then carved a sell signal on March 1st.

That bearish candle triggered a 170-pip loss over the next five sessions.

However, on March 8th, CADJPY reached the first key support area at 82.30/40.

Since then, the pair has regained 150 pips of the 280 pips lost since the pair carved a year-to-date high on March 1st.

You may notice that this recovery is about half of the recent losses.

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In fact, the 50% level of the range between the year-to-date high at 85.23 to the March 8th low at 82.41 comes in at 83.80.

You can also see how 83.80 served as resistance during the first half of February.

And if you go back to the second half of 2018, you’ll notice that 83.80 acted as support in August, September, and December.

Want access to the same “New York close” Forex charts I use? Click here.

So will CADJPY selloff from the 83.80 area?

That’s yet to be seen. But the 83.80 resistance zone is sellers’ best chance of extending the decline that began earlier this month.

A move lower from here would target 82.40 with a close below that exposing 80.55.

Alternatively, a daily close above 83.80 would re-expose former channel support (new resistance) near 84.80.

At this point, it’s probably best to see what today’s session produces in terms of a sell signal.

And that means waiting for the 5 pm EST close before acting. Anything else is too speculative for my liking.

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CADJPY resistance area at 83.80

About the Author Justin Bennett

Justin Bennett is an internationally recognized Forex trader with 10+ years of experience. He's been interviewed by Stocks & Commodities Magazine as a featured trader for the month and is mentioned weekly by Forex Factory next to publications from CNN and Bloomberg. Justin created Daily Price Action in 2014 and has since grown the monthly readership to over 100,000 Forex traders and has personally mentored more than 3,000 students.Read more...

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  • Justin Bennett says:

    You can also follow me on Telegram here:

    https://t.me/justinbennett

  • Ehiz says:

    Watching this too…Thanks J

    • Justin Bennett says:

      You’re welcome.

  • Themby says:

    I have been on the watch for that 83.80 sell off. As you’re saying, I’m also waiting to see how it closes off. Thanks Justin

    • Justin Bennett says:

      You’re welcome. Correct, the daily close will be key here in my opinion.

  • Praise says:

    Alright sir. Thanks a lot.

    • Justin Bennett says:

      You’re welcome.

  • Jacob says:

    Thank you Justin

  • Jenerali says:

    was watching at the pair at a time you posted it.. thanks

  • Tycoon says:

    This helps a lot. Thanks

  • Nathaniel says:

    Potential heads and shoulders pattern formed

  • osahon says:

    Thanks alot Baba justin ,you are just too much .

  • Adebayo saheed says:

    helpful as usual…thanks justin

  • philip johnson says:

    what do think of eurcad , i have sell

  • Yusuf Ahmad says:

    Thanks

  • Mohammad says:

    Good explanation

  • Pierre Mifsud says:

    Justin I know that this is irrelevant….do you agree with me that there is a clear inverted head and shoulders on the daily time frame of EURGBP…..Pls confirm

    • Pierre Mifsud says:

      Returning to the CADJPY on the monthly timeframe there is a head and shoulder about to be completed….although it is not the best head and shoulders….with the neckline around 80.35

    • Not that I can see.

      • Pierre Mifsud says:

        I see clearly the left shoulder and the head, now probably ultimately it will reach the 0.9052 by forming the other half…..Can you see it……

        • Pierre Mifsud says:

          I am referring to EURGBP

  • Adeniyi says:

    Thank you Mr Bennett God will reward you ,just continue your good work and The reward will follow soon.

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