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:
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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.
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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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27 comments
I like forex but I can’t afford the price to pay you Mr justn ,,am real crystal
You can always follow along for free. 🙂
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
You’re welcome. I might publish something on it, but AUDJPY has been more difficult to interpret than other yen crosses in my opinion.
Thanks for this. Really grateful.
It is a strong resistance area indeed because of the weekly horizontal Line resistance at 84.25.
There are often multiple factors that play into a key support or resistance area.
Great analysis, thanks Justin, much appreciated
You’re welcome. Thanks for commenting.
Thank you Mr Bunnet for your educative researched posts. I will be a customer when I get money
You’re welcome, Catherine. Happy to help.
Great analysis and very helpful on the same time. Thank you very much.
My pleasure. Glad you enjoyed it.
Thank you Justin
You’re welcome. Let me know if you have questions.
Justin, thanks for the good job. When are these minor support levels? And again has zndjpy and gbpjpy failed?
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.
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