- CAD/JPY has formed a temporary top around 91.63 on Sep 15th 2017 and started to decline sharply from that level. The pair has broken the low of 89.84 made on Sep 29th 2017 after weaker than expected trade data from Canada.
- Trade data released yesterday shows that exports continue its downward trend for the third consecutive month shows Canadian economy is losing momentum and this reduces chance of further rate hike by BOC.
- Any break below 90 confirms minor weakness, a dip till 89.28 (38.2% fibo)/88.80 (55- day EMA)/86.95 (100- day MA).
- The near term resistance is around 90.50 and any break above will take the pair to next level 91/91.63. Bullish continuation can be seen only above 91.65.
It is good to sell on rallies around 90-90.15 with SL around 91 for the TP 88.85/87.10.
Resistance
R1- 90.50
R2 91.65
R3- 92
Support
S1- 89.28
S2-88.80
S3-87.10
