Top pick for the day - CADJPY

Heading into resistance soon

The recent rebound off the 87.463 low looks corrective for the Canadian Dollar/Japanese Yen Cross (CADJPY)… which suggests that will likely be another move back to below the said low sometime in the future.

Why is it corrective?
A correction usually occurs when prices are trapped within a channel (a corrective channel) and the price movements are ragged and overlapped each other.

In the near term, the CADJPY could continue on higher towards the upper end of the channel, closer to 94.00 levels before the rebound ends.

There is a strong resistance cluster between 93.75-94.90 and we expect prices to stall within this band.

The falling 200-day SMA could also act as resistance if the said band is taken out.

Falling below 91.639 would boost the idea that CADJPY could start to inch its way lower back to retest 88.886 and eventually 87.463. Higher for now. (Read Report)

Source : CIMB Research

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