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Major support - 84.61-84.85 (Trend line and 200 day MA)
CADJPY has shown very nice recovery from the Friday’s low of 85.05. The pair has jumped more than 50pips for the day. It hits high of 85.92 and has shown a minor dip. It has recovered sharply from trend line support of 84.61 and shown a good jump of 130 pips. It is currently trading around 85.75.
The pair is facing major resistance around 85.97-86 (55- day EMA) and any break above targets 86.40/87 is possible. The pair should break above 87 for further bullish continuation.
On the lower side, any violation below 84.60 confirms major trend reversal and a dip till 83.76/83 is likely.
It is good to buy on dips around 85.50-55 with SL around 85 for the TP of 87.
