FxWirePro: CAD/JPY trade idea

• CAD/JPY was trading higher continuously for past 11 trading days. The pair jumped nearly 300 pips from the low of 82.21.Bank of Canada (BOC) hiked rates higher by 25bpbs for fourth time since last summer amid trade tensions.The central bank has raised growth outlook for 2019 and 2020. But cautioned that more trade protectionism is the most important threat to global prospects. BOC confirmed that further rate hike will be data dependent and it will be in gradual pace. The pair has shown a minor decline after hitting high of 85.17. Loonie has declined sharply and hits low of 1.30650. But heavy dip in crude oil prices has made USD/CAD to recovery more than 140 pips till 1.32184.
• On the higher side, any break above 85 will take the pair to next level till 86.26 (200- day MA)/87.10.
   
• The near term support is around 84.20 (55- day EMA) and any break below targets 83.60/82.90 (61.8% fib).
  
  It is good to buy on dips around 85-85.10 with SL around 84.50 for the TP of 86.26/87.

Resistance

R1- 85.65

R2 –86.25

R3- 87.10

Support               

S1- 84.20 

S2-83.60

S3-82.90