Daily Price Action
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CADJPY: Keep an Eye on These Two Levels

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Like several other yen crosses, the CADJPY has been trending higher since the November 2016 low. For those who don’t recall, that’s when the outcome of the U.S. elections helped flip the risk-on switch.

I’ve been tracking a few of the yen crosses as they approach multi-year resistance levels. Among them is the CADJPY.

As you can see from the monthly time frame below, the 91.50 area is a significant one.

CADJPY pivot on the monthly chart

The area provided support between April 2013 and January 2015. It even influenced the price as far back as 1997 and 1998.

A look at the price action since mid-September of last year shows how 91.50 is still having its way. It capped the September 15, 2007 advance and did so again just two weeks ago on January 5.

Now, here’s where things get even more interesting.

There’s a trend line that extends from the June 2017 lows. I mentioned it in the member’s area before Wednesday’s low at 88.22, which helped confirm the validity of the support level.

For now, it’s a matter of waiting for a daily close (New York 5 pm EST) below trend line support or above the 91.50 handle. A close below the trend line would first target 85.50 followed by 83.50. There’s reason to believe 87.75 could also become a factor.

Alternatively, a daily close above 91.50 would expose 93.25 followed by the 95.00 area.

I’m going to remain on the sideline until a favorable opportunity presents itself. Note that the BOJ is scheduled to update their monetary policy stance during Tuesday’s session next week.

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CADJPY trend line on the daily chart

Leave a Comment:

10 comments
Achinda says

good

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Darius says

I see also a trendline from 2016 septemper connected with 2017 june, which might be some support before reaching 85,5

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Veronica says

Keep up the good work Justine, your analysis are outstanding… I have learned a lot from you in just a short period of time. Thank you…

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    Justin Bennett says

    Thanks for the kind words, Veronica. Pleased to hear that!

    Reply
Francis says

Hello Justin,thanks for your education for this while . I started receiving your setup recently but it has transformed my trading for the better. More greace to your elbow.

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    Justin Bennett says

    You’re welcome, Francis. It’s great to hear you’re finding the content valuable.

    Reply
R.BAMBANG SUTRISNO says

Saya coba mo trading POSISI YG TERBAIK SEL or BAY.. agar mendapat keberuntungan brdasarkan analisa anda???

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    Petrus says

    Maksud nya?

    Reply
Fallet says

Ses tres bon mais solement tu a ete formidable.

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Fallet Daniel says

Moi aussi je faire trade forex.

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