• FxWirePro: CAD/JPY trend line break out

    Source: FxWire Pro - Technicals / 23 Jan 2018 07:27:38   Eastern Standard Time

    • Major support – 88.68 (trend line joining 88.26 and 88.50).
    • CAD/JPY was consolidating in narrow range between 89.63 and 88.50 for the past one week. The pair has broken major trend line support at 88.68 and declined sharply till 88.43 at the time of writing. It is currently trading around 88.57.
    • The Japanese yen was trading high against all majors after BOJ has kept policy decision unchanged. The central bank decided to hold its target of asset purchase at JPY 80 trillion.
    • The pair declined almost 80 pips from the intraday high of 88.99 and expected to decline further.
    • On the lower side, trend line break out will drag the pair to next level till 88.26/88.Any break below 88 will take the pair to next level 87.33 low made on Dec 18th 2017.
    • The near term resistance 89 and any break above will take the pair till 89.63/90. It should break above 90.30 (61.8% fibo) for further bullishness.

    It is good to sell on rallies around 88.6-65 with SL around 89 for the TP 88/87.35.