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CADJPY: Sellers Need to Defend 83.80

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CADJPY has worked out well for us so far this year.

It all started when the pair was approaching former channel support as new resistance at 84.50. You can see that commentary here.

The Canadian dollar cross then carved a sell signal on March 1st.

That bearish candle triggered a 170-pip loss over the next five sessions.

However, on March 8th, CADJPY reached the first key support area at 82.30/40.

Since then, the pair has regained 150 pips of the 280 pips lost since the pair carved a year-to-date high on March 1st.

You may notice that this recovery is about half of the recent losses.

In fact, the 50% level of the range between the year-to-date high at 85.23 to the March 8th low at 82.41 comes in at 83.80.

You can also see how 83.80 served as resistance during the first half of February.

And if you go back to the second half of 2018, you’ll notice that 83.80 acted as support in August, September, and December.

Want access to the same “New York close” Forex charts I use? Click here.

So will CADJPY selloff from the 83.80 area?

That’s yet to be seen. But the 83.80 resistance zone is sellers’ best chance of extending the decline that began earlier this month.

A move lower from here would target 82.40 with a close below that exposing 80.55.

Alternatively, a daily close above 83.80 would re-expose former channel support (new resistance) near 84.80.

At this point, it’s probably best to see what today’s session produces in terms of a sell signal.

And that means waiting for the 5 pm EST close before acting. Anything else is too speculative for my liking.

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CADJPY resistance area at 83.80

Leave a Comment:

34 comments
Justin Bennett says

You can also follow me on Telegram here:

https://t.me/justinbennett

Reply
    anas says

    Thank you Justin

    Reply
      Justin Bennett says

      Anytime. Let me know if you have questions.

      Reply
Ehiz says

Watching this too…Thanks J

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    Justin Bennett says

    You’re welcome.

    Reply
Themby says

I have been on the watch for that 83.80 sell off. As you’re saying, I’m also waiting to see how it closes off. Thanks Justin

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    Justin Bennett says

    You’re welcome. Correct, the daily close will be key here in my opinion.

    Reply
Praise says

Alright sir. Thanks a lot.

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    Justin Bennett says

    You’re welcome.

    Reply
Jacob says

Thank you Justin

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    Justin Bennett says

    You’re welcome, Jacob.

    Reply
Jenerali says

was watching at the pair at a time you posted it.. thanks

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    Justin Bennett says

    You’re welcome.

    Reply
Tycoon says

This helps a lot. Thanks

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    Justin Bennett says

    Glad it helps.

    Reply
Nathaniel says

Potential heads and shoulders pattern formed

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    Justin Bennett says

    It could have the same effect, but I wouldn’t call it that.

    Reply
osahon says

Thanks alot Baba justin ,you are just too much .

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    Justin Bennett says

    You’re welcome.

    Reply
Adebayo saheed says

helpful as usual…thanks justin

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    Justin Bennett says

    Always glad to help. Cheers.

    Reply
philip johnson says

what do think of eurcad , i have sell

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    Justin Bennett says

    I think it’s sideways and incredibly unattractive.

    Reply
Yusuf Ahmad says

Thanks

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    Justin Bennett says

    You’re welcome.

    Reply
Mohammad says

Good explanation

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Pierre Mifsud says

Justin I know that this is irrelevant….do you agree with me that there is a clear inverted head and shoulders on the daily time frame of EURGBP…..Pls confirm

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    Pierre Mifsud says

    Returning to the CADJPY on the monthly timeframe there is a head and shoulder about to be completed….although it is not the best head and shoulders….with the neckline around 80.35

    Reply
    Justin Bennett says

    Not that I can see.

    Reply
      Pierre Mifsud says

      I see clearly the left shoulder and the head, now probably ultimately it will reach the 0.9052 by forming the other half…..Can you see it……

      Reply
        Pierre Mifsud says

        I am referring to EURGBP

        Reply
Adeniyi says

Thank you Mr Bennett God will reward you ,just continue your good work and The reward will follow soon.

Reply
    Justin Bennett says

    You’re welcome.

    Reply
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