ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for alerts Register for real-time alerts, custom portfolio, and market movers

CAD/JPY Tests Pivotal Level Ahead Of BOC And Trade Talk Outcome

Share On Facebook
share on Linkedin
Print

With a couple of events likely to impact CAD/JPY this week, we’re closely watching to see how it reacts around the pivotal level it rebounded towards this week.

Whilst this week’s BOC meeting is flagged as a risk-event for CAD crosses in general, ongoing trade talks between the US and China could leave its mark on CAD/JPY. Positive trade headlines have proven supportive for commodity currencies (and sentiment in general), whilst simultaneously reducing demand for safe havens such as the yen. Therefore, a successful meeting could be a net positive for CAD/JPY or simply weigh on the cross if a deal is not struck. It’s then interesting to note the cross is hovering just beneath a pivotal zone at 82.07 – 82.17 around these events.

 

We can see on the daily chart that the 20-day average and June ’18 low marks resistance at 82.17, and today’s intraday breach of the 82.07 high shows the bearish structure is being tested. A clear break above 82.17 could see the cross aim for the August ’18 low around 83.63, whereas a move lower from here takes it back in line with the dominant trend. Either way, we’d prefer to see compression before its next directional move given the volatile rebound after last week’s flash crash.

We can see a prominent bullish pinbar on the weekly chart which had a high-low range of 4.7%. The last time we saw a reversal candle of this magnitude was the bullish hammer in November 2016, which marked the beginning of a rally spanning over 19%. That’s not to say that the cross is poised for a double-digit return from here, but the bull-camp will likely take comfort knowing that last week’s flash crash failed to close beneath 80.57 support and invalidated a 2-year head and shoulders pattern. And with near-term momentum favouring the bull-camp, the upside break appears the more likely outcome at the moment.

 

Faraday Research offers real time FX and Equity trade signals from qualified analysts. Click here to try us free.

 

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com