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CADJPY: Keep an Eye on 84.50 Resistance

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The CADJPY is in the process of testing a significant resistance area at 84.50.

It’s the former ascending channel support that extends from the 2016 low. I mentioned the level back on December 18th.

That breakdown in mid-December was good for 650 pips.

Here it is again in case you missed it:

CADJPY ascending channel on weekly time frame

Since the January 3rd low, CADJPY has made its way back to the 84.50 region.

And as we know, old support becomes new resistance.

However, there’s no sign that sellers are ready to take back control, at least not yet.

Additionally, a study of other yen crosses such as GBPJPY and even NZDJPY aren’t showing much yen strength.

The USDJPY is also catching a slight bid so far today.

The lack of a proper CADJPY sell signal will keep me on the sideline for now. Just like the GBPJPY I mentioned the other day, I don’t want to step in front of buyers.

Keep in mind that the 61.8% Fibonacci retracement from the October 2018 swing high to the year-to-date low comes in at 84.56.

That could be a price to keep an eye on this week.

As long as CADJPY stays below the 84.50 area on a daily closing basis, I will treat this year’s price action as a corrective move back to new resistance.

Key support comes in at the 82.00 handle. However, there are bound to be other minor support levels along the way.

On the flip side, a daily close above 84.50/60 would negate the bearish idea.

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CADJPY new resistance area at 84.50

Leave a Comment:

27 comments
Ali Asad says

good

Reply
      thomask says

      I like forex but I can’t afford the price to pay you Mr justn ,,am real crystal

      Reply
        Justin Bennett says

        You can always follow along for free. 🙂

        Reply
shaharear hasan says

wow

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Themby says

thanks Justin, i was waiting for your analysis on this pair for this week. I’d love to hear your view on AudJpy as well. Thanks again

Reply
    Justin Bennett says

    You’re welcome. I might publish something on it, but AUDJPY has been more difficult to interpret than other yen crosses in my opinion.

    Reply
mastano says

Thank you

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    Justin Bennett says

    You’re welcome.

    Reply
Ezeadim says

Thanks for this. Really grateful.

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    Justin Bennett says

    You’re welcome.

    Reply
Daluxolo Dali Mbangxa says

It is a strong resistance area indeed because of the weekly horizontal Line resistance at 84.25.

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    Justin Bennett says

    There are often multiple factors that play into a key support or resistance area.

    Reply
Methuli Nleya says

Great analysis, thanks Justin, much appreciated

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    Justin Bennett says

    You’re welcome. Thanks for commenting.

    Reply
Peter promise igbokwe says

thanks brother

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    Justin Bennett says

    Anytime, Peter.

    Reply
Catherine says

Thank you Mr Bunnet for your educative researched posts. I will be a customer when I get money

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    Justin Bennett says

    You’re welcome, Catherine. Happy to help.

    Reply
Polys says

Great analysis and very helpful on the same time. Thank you very much.

Reply
    Justin Bennett says

    My pleasure. Glad you enjoyed it.

    Reply
Oluchukwu says

Thank you Justin

Reply
    Justin Bennett says

    You’re welcome. Let me know if you have questions.

    Reply
Sunday Akinbola says

Justin, thanks for the good job. When are these minor support levels? And again has zndjpy and gbpjpy failed?

Reply
    Justin Bennett says

    You’re welcome. I’m not sure what you mean by “failed”. There are always two possible directions a market can take. It’s a trader’s job to account for both.

    Reply
nadzuah says

thank you

Reply
    Justin Bennett says

    You’re welcome.

    Reply
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