- Major resistance- 88.65 (Trend line joining 90.72 and 89.22).
- CAD/JPY has broken trend line resistance at 88.67 and jumped till 89.33. The main reason for jump in Canadian dollar against all majors was due to better than expected economic data. The pair jumped 200 pips from the low of 87.32 on Dec 18th 2017. It hits high of 89.33 and is currently trading around 89.13.
- Canadian retail sales rose 1.5% mom compared to forecast of 0.3% and ex auto came at 0.8% mom vs forecast of 0.4%. The consumer price index of Canada increased to 32.1% YOY from 1.4% in Nov compared to forecast of 2. %. The positive economic data might increase the chance of rate hike by BOC next year.
- The near term intraday major resistance is around 89.22 (Dec 5th high) and any convincing break above will take the pair to next level till 90/90.77.
- On the lower side, near term support is around 88.54 (50- day MA) and any violation below will drag the pair to next level till 88.00 (daily Kijun-Sen)/87.13.
It is good to buy on dips around 88.65-70 with SL around 88 for the TP of 90/90.75.
Resistance
R1- 89.25
R2 -90
R3-90.75
Support
S1-88.54
S2- 88
S3-87.13
