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CADJPY Extends Losses Below Key Support

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On February 25th I pointed out the 84.50 resistance area on CADJPY.

It’s a level that has influenced the pair since last December. You may recall the December 18th breakdown that was good for 650 pips.

My suspicion came to fruition last Friday.

CADJPY not only tested the 84.50 region as new resistance, but it also carved a bearish rejection candle as a result.

The pair went on to lose more ground on Monday. However, buyers did their part to keep the decline as orderly as possible.

But that didn’t stop sellers from breaking a short-term trend line.

I pointed this out to Daily Price Action members earlier in Monday’s session. As you can see from the 4-hour chart below, CADJPY is now well below this level.

As we know, old support becomes new resistance.

With that in mind, any retest of this 84.20/30 area will likely attract an influx of selling pressure.

Key support comes in at 82.30 followed by 80.55.

Keep in mind that we have a Bank of Canada rate decision and statement this Wednesday the 6th at 10 am EST.

Those events will no doubt shake things up for the CADJPY.

While not quite as market moving, Canada also reports on their employment situation this Friday the 8th at 8:30 am EST.

It would be wise to keep an eye on all of these events if you decide to trade CADJPY.

From a purely technical perspective though, the pair will remain under pressure while below new resistance at 84.20/30 on a 4-hour closing basis.

IMPORTANT: I use New York close charts so that each day closes at 5 pm EST.

Click Here to get access to the same charts I use.

CADJPY rising wedge on the 4-hour chart

Leave a Comment:

21 comments
NinjaForex says

thanks for suggest Justin

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Catherine Cianjoka Kithinji says

I’m grateful for the mentorship under Justin

Reply
    Justin Bennett says

    Happy to have you here.

    Reply
Pierre Mifsud says

As I had said in my previous comments trading CADJPY is very tricky….you WILL see from the 1 hour time frame that the resistance will be retested at 84.62 from a current 84.01 in this time of writing.

Also with the US OIL prices ascending above 55 the 70 handle is still exposed and more clearly seen on the weekly. From the 1 hour time frame reaching the 57.70 handle by Wednesday is more of a reality. This will strengthen the CAD further…..

I only trade what I can perceive through the charts. I ignore fundamentals…

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Saif says

Thanks sir you are great
When i see your analysis i say aha thanks

Reply
    Justin Bennett says

    Thanks for the kind words and support.

    Reply
Prashant says

83.60 earlier resistance on dailies turned to support now?

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Themby says

On the watch…

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aaisha says

justin give us revised analysis of usdjpy gbpusd and eurousd as gbpusd moved below your mentioned support of 1.3200

Reply
    Justin Bennett says

    I don’t take requests. Sorry.

    Reply
Bennett somtsewu says

Your analisis are superb, they made change the way I used to analise

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Massy Bondo says

Thanks for good analysis

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Adebayo saheed says

Thanks for the updates

Reply
    Justin Bennett says

    Anytime, Adebayo.

    Reply
Yusuf Ahmad says

Thanks

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DO VIET NAM says

you are my Idol. thanks for guiding! wish you have a good health!

Reply
    Justin Bennett says

    Thanks for the support. Have a great rest of the week.

    Reply
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