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CADJPY: Keep an Eye on 83.80 Next Week

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The last time I discussed CADJPY was back on December 18th of last year.

We were trading a bearish break from an ascending channel that began in 2016. In fact, there were two channels in play at the time.

Within nine trading days, CADJPY fell an additional 650 pips following the retest of the 85.00 resistance area in mid-December.

The January 3rd flash crash delivered nearly half of those losses on its own.

Since that low on the 3rd, CADJPY has managed to claw back nearly 600 pips. Buyers are now approaching levels we discussed on the 18th of last month.

Two days ago, the pair managed to clear the 82.15 resistance level. This was the swing low in June of last year.

You can see how the pair held above 82.15 yesterday and even caught a bid from it earlier in today’s session.

That leaves the 83.80 resistance area exposed for next week.

This area served as support between August and December of last year. As such, it will likely attract sellers on a retest as new resistance.

However, sellers need to be careful here.

Many of the yen pairs are gaining ground as the S&P 500 is once again in rally mode.

It’s unclear at the moment whether this latest CADJPY rally is a respite in the downtrend or something more.

As such, waiting for bearish price action such as a pin bar from 83.80 next week wouldn’t be a bad idea.

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CADJPY support and resistance levels

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13 comments
vi says

Thank you!

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Dee says

Thank you sir

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Praise says

Thanks so much sir

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Oladimeji says

Thank you boss

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NinjaForex says

thanks for suggest analisy

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Uzoma Nnamdi says

Just finished my analysis on cadjpy, and your commentary just complemented my analysis. Thank you and a happy new week. Sir what is the way of been confident with your analysis

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Ehiz says

Yes, this will be a good zone for sell, if a bearish price action should appear. another reason why that zone is a good zone is because that is the 50% fib recement of the fall from 89.20 to 77.00 if the market will respect the 50% Fibonacci will be another thing. Thanks J

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Felix says

Thank you very much Justin. May God bless you.

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OGBORO preciouslife says

Respect boss

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Pierre Mifsud says

Justin from the weekly time-frame up to the 85.23 is very possible as we approach a previous support now becoming resistance

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    Pierre Mifsud says

    In addition to what i said above please notice the bullish pin-bar on the weekly

    Reply
Sweet Connections says

Thanks for the trade idea will wait for confirmation to enter looks like a sweet trade

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Prasanna says

82.50-90 looks resistance as twice price has fallen from here & held below on daily chart ; also STOCH.reached overbought.So I think daily candle must close above 83 to go for 83.80.

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