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Weekly Technical Outlook: CAD/JPY

Market Forecasts for May 11th – May 15th

  • Stop loss 99.93
  • Entry level 98.89
  • First Target at 97.87
  • Next targets to test at 97.12, 96.44

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Technical Analysis:

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CAD/JPY rally has hit the major resistance area of 99.85 levels with the doji and price rejecting the key area followed by the pin bar. Both form a bearish pattern signalling that the pair has found strong rejection by the bears and was unable to break the resistance of 99.85 which aligns with the fib levels of 50 along with the down trend where the pair is currently trading with the bearish movement.
The pair is looking for some corrective structure and should see some short term downside bias and should retest the area around the fib levels of 23.6 and area around 97.12 levels prior to any upward movement.

Economic:

  • New Housing Price Index on Thursday for the Canadian
  • Manufacturing Shipments along with Canadian Investment in Foreign Securities on Friday
  • Official Foreign Reserves for the Yen on Monday
  • Lagging Index, Coincidence Index, Leading Index on Tuesday along with Current Account Balance
  • Eco-Watchers Survey followed by Bonds, Stocks, Domestic CGPI on Thursday and Consumer Confidence Index on Friday

Area of Interest:

  • The area where price has found resistance at 99.0 levels.
  • Doji followed by the pin bar rejection at the key resistance area.
  • Price action has closed below the current fib levels of 50 on the lower time frame.
  • Target of the fib levels 38.2 should be the key for the next move on the pair.
  • Down trend line align with the all important level of the fib at 50.

 DISCLAIMER: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

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