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CADJPY Finds Selling Pressure at a Familiar Level

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CADJPY made a significant break during yesterday’s session, closing below the 94.50 handle, a level we have been tracking for several weeks now.

The pair has shown considerable weakness ever since breaking below channel support on June 30th. That break was quickly followed by a BoC rate cut on July 15th that catalyzed additional selling pressure.

The 94.50 can be seen acting as strong support between February and April and more recently attracted buyers in early July and again last week. As we know, former support becomes new resistance, which appears to be the case so far in today’s session.

From here traders can begin watching for selling opportunities while below 94.50 on a closing basis. I have added to my short position from 98.00 and will look to book profits in the 93.00 area, which is represented by trend line support from January of 2013.

Summary: Watch for a selling opportunity while below 94.50 on a closing basis. Key support comes in at 93.00.

CADJPY new resistance level on the daily time frame

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