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CADJPY Reaches Confluence of Resistance at 83.80

By Justin Bennett
/ February 4, 2019

CADJPY has reached a confluence of resistance at 83.80.

I mentioned this area on January 29th. It’s the intersection of ascending channel resistance and a former horizontal support level.

The latter served as support between August and December of last year.

With CADJPY now retesting 83.80 resistance, we could start to see an influx of selling pressure.

However, there isn’t any indication that sellers are back in control, at least not yet.

Without a price action signal such as a pin bar, it’s difficult to tell how many offers there are just above the 83.80 handle.

That said, as long as CADJPY is below the 83.80 to 84.00 area on a daily closing basis, the pair is vulnerable.

If we do get a turn lower, expect to see buyers step in at channel support near 82.70.

It’s going to take a close below channel support to open up downside targets including 80.55 and perhaps 78.70.

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Alternatively, a daily close above 83.80 – 84.00 could expose former (ascending) channel support that extends from the 2018 low.

Those who were following me in November and December of last year will remember the short setup that materialized from that larger channel.

For now, selling CADJPY at 83.80 without bearish price action is a bit risky in my opinion.

The better option might be to either wait for a pin bar from 83.80 or a daily close below channel support near 82.70.

Until then, I will assume that buyers remain in control.

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CADJPY confluence of resistance

Leave a Comment:

18 comments

Nkosi says

Thank you

Ruth says

Thank you Justin I am watching this pair closely

Ehiz says

I feel that cadjpy still have a long way to go 85.200 probably because oil already formed and inverse head shoulder closed above it on friday, it has retested the neckline today during the beginning of New york session. If the neckline retest holds on daily closing basis. Then CADJPY will get to the previous breakout point at 85.200.

Robin says

No I don’t agree it’s going down from here ok

EHIZ says

If you think so no problem, Fingers crossed.

EHiz says

Also, take note of the rising channel she broke out from.

Mal says

I agree with you Robin, It`s going down from here. But let wait and see, the market is the leader and we are the followers.

wesley welile Limekaya says

Thank you for the alert sir

Harvester says

Thanks Alot Justin

Adebayo saheed says

thank you sir

Colin says

I have set target at 85.3 previous area of resistance. I think the rise is still strong, but will keep an eye out for any change particularly in thr form of a pin bar.