• FxWirePro: CAD/JPY trades weak, good to sell on rallies

    Source: FxWire Pro - Technicals / 09 Jan 2018 08:53:18   Eastern Standard Time

    • CAD/JPY declined sharply after hitting a high of 91.58.The main reason for slight dip in Canadian dollar/JPY was mainly due to slight bullishness in Japanese yen against all majors. The pair declined almost 100 pips from the high of 91.58. It is currently trading around 90.55.
    • BOJ has planned to reduce long term bond buying by JPY10 billion to JPY190 billion first reduction since 2016.
    • US crude oil prices rose almost 2.5% in the year 2018 yesterday and hits highest level in 3 years on account of protest in Iran and decrease in number of US rig counts. US re impose of sanctions on Iran will make the country harder to export oil globally. US oil hits high of $62.53 and is currently trading around $61.94.
    • The near term intraday major resistance is around 91.63 (Sep 15th high) and any convincing break above will take the pair to next level till 92/92.50.
    • On the lower side, near term support is around 90.40 (23.6% fibo) and any violation below will drag the pair to next level till 89.88 (10- day MA)/89.18 (daily Kijun-Sen)/88.59 (50- day MA).

    It is good to sell on rallies around 91 with SL around 91.60 for the TP of 89.25/88.60.