FxWirePro: CAD/JPY trades lower on weak crude oil prices, good to sell on rallies

• CAD/JPY was trading extremely weak in previous week and declined almost 300 pips on account of weak crude oil prices. Canadian dollar was trading weak against all majors after crude oil declined more than 3%. The pair hits low of 86.04 on Friday. WTI crude oil prices dropped from the high of $72.78 made previous week till $65.78 almost 7 dollar in two trading session after Saudi and Russia said that OPEC will increase its supplies in the near term. The yen was trading slightly stronger on US- South Korea geo political tensions. USDJPY declined more than 200 pips and is currently trading around 84.14.
   
• The pair’s major near term resistance is around 85 (55- day EMA) and any break above will take the pair 85.49 (daily Kijun-Sen)/85.94 (61.8% fibo).
   
• The major support is at 83.89 and any break below will drag the pair down till 82.90 (61.8% fibo)/82.56.

It is good to sell on rallies around 84.35-40 with SL around 85 for the TP of 83/82.56.