CADJPY Forex Pair Outlook

Economic News

Canadian dollar gaining its strength with increase in oil prices and on optimism of US and China trade war.CAD trading steady against other peers. Last week Canadian CPI data surprisingly came above estimate at -0.1% vs. -0.4%.

If global economic market condition remains stable then appetite for riskier assets will increases. CAD as currency earlier already under performs.

JPY which considered as safe heaven bet now weakening against other major currencies after flash crash. Apart from this no major economic data came from Japan which will impact currency future move and JPY remains subdued.

This week on 23-Jan-19 Japan will release monetary policy statement followed by BOJ Press Conference. Canadian core retail sales number on m/m basis will be released on same day, which gives insights of Canadian economy health and business condition.

Pair Outlook

After flash crash pair rebounded and trade near previous resistance zone which was previous support. Pair can rise further but momentum still remains subdued. At these levels major Fibonacci levels also came which increases chances of reversal from these levels.

83.80 And 82.5 are major levels if pair breaks on any of side momentum picks up. On the downside, the 81.65 support-line break can lead pair to 81.00 and then to 80.60. Level 80 act as major prior psychological support .If pair broke below 80 leads to major slide till 77.00

Technical Strategy

On technical daily charts pair trending below falling trend line and position came at 83.89.

Momentum indicator like RSI also revert and now declining suggest loosing strength of momentum. Pair can find resistance around 83.50-83.90. If price not able to hold above 82.5 prices can slide to test support of 82.07.On 4 hour charts pair also trade with small price candles and looks momentum is fading.

On larger time frame pair still has bearish bias and again can test level of 80.00.

Major support and resistance levels as below:

Symbol S3 S2 S1 Pivot R1 R2 R3
CADJPY 80.72 81.34 81.72 82.34 82.96 83.34 83.96

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