FxWirePro: Buy CADJPY on dips

Potential Reversal Zone (PRZ)- 84.10

CADJPY recovering sharply after a decline of more than 75 pips from high of 84.24. The pair hits low of 83.48 yesterday and jumped till 84.07 at the time of writing.The jump was mainly due to rising oil prices. WTI crude oil rose more than $1.5 on Chinese demand and decline in US crude inventories. The data form American Petroleum Institute (API) shows that US crude oil inventories declined by 3.1 million barrels compared with forecast for the increase of 1.7 million barrels. Canadian manufacturing sales for the month of Feb came at 0.2% after a 0.8% jump in Jan. It is currently trading around 84.03.

The major resistance is around 84.24 high made on Apr 15th and break above that level targets 84.60/85/85.25.Any bullish continuation only above 85.25.

On the lower side, near term support is around 83.50 (300- H EMA) and any violation below will drag the pair to next level till 83/82.81/82.20/81.98.

It is good to buy on dips around 83.75-80 with SL around 83.48 for the TP of 85.25.