CADJPY trades well above 55- day EMA, jump till 83.35 likely

Major trend reversal level: 81.85-82.08 (55- day EMA and Jun 11th high)

As per our analysis, CADJPY is trading higher and closed above 55- day EMA for the second consecutive day. It hits 5 -week high after the release of Canadian GDP data. Canadian Apr GDP came at 0.3% compared to forecast of 0.2% and y/y reading came at 1.5% vs 1.6% expected. The strong oil price due to the escalation of tension between the US and Iran is supporting the pair. It hits an intraday high of 82.43 and is currently trading around 82.33.

On the higher side, the pair is facing near term trend line resistance around 82.62 and any break above targets 83.20/83.68 (200- day MA) is possible.

The near term major support is around 81.80 (50- day MA) and any violation below will take the pair to next level till 81.23 (20- day MA)/80.57/79.97 (Jun 3rd low).

It is good to buy on dips around 82.15-20 with SL around 81.65 for the TP of 83.65.