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CADJPY is sitting on a critical support level with just four trading days left in June.
The level in question is 78.40.
Why is that significant?
If you saw my post on June 11th, you know that 78.40 is the location of a trend line that extends from the pair’s all-time low.
It’s a twenty-five-year trend line that you can’t afford to ignore.
Notice that CADJPY has yet to close a month back above that level.
In other words, it’s still serving as resistance on a monthly closing basis.
That’s the key here.
It’s also why I think June’s close will be so significant for CADJPY and others.
If June closes above 78.40 or thereabouts, it will imply that the March selloff was a false break.
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It would also signal the likelihood of a higher CADJPY.
Alternatively, a June close below 78.40 would suggest the opposite and would complete a bearish pin bar on the monthly time frame.
But keep in mind that 78.40 is an estimation.
It’s impossible to know the exact price when dealing with a twenty-five-year trend line as the price of some of those lows will vary by broker.
Regardless, the next few trading days will be critical for CADJPY, especially where June 30th closes in relation to 78.40/50.