FxWirePro: CAD/JPY Daily Outlook

Major Support - 84.70

The pair has formed almost a double bottom around 84.70 and shown a minor jump from that level. It has jumped more than 50 pips till 85.41. It is currently trading around 85.23.

Canadian dollar was trading higher against all majors yesterday as Saudi selling Canadian asset will not have much impact. The Saudi Central bank and state pension funds has ordered overseas fund manger to sell Canadian assets including bonds,stocks and cash holdings. But total asset size will be in range of $10 billion to $25 billion which is less than 10% of daily volume in the currency.  

Technically, near term major resistance is around 85.52 (200- H MA) and any break above targets 85.85/86.29.

On the lower side, major support stands at 84.70 and any break below targets 84.45/84.26.

It is good to buy on dips around 85.10-15 with SL around 84.70 for the TP of 86.29.