FxWirePro: CAD/JPY upside capped by trend line resistance, good to sell on rallies

• Major resistance – 84.55 (trend line joining 88.66 and 87.72).
   
• CAD/JPY declined after forming hitting trend line resistance around 84.56 and started to decline from that level. The pair declined till 84.22 at the time of writing. It is currently trading around 84.30.
   
• CAD is trading weak against all major pairs on account of weak crude oil prices. Historically, oil sensitive currency has been more correlated to crude monetary policy.  WTI shows a minor jump from the 10- month low of $42.03. But upside is capped by supply glut.
   
• The pair has broken major support at 83.76 (10 day MA) and any break below will drag the pair down till 83.19 (21 EMA)/83.05 (200 – day MA)/82.70 (daily Kijun-Sen).
   
• On the higher side, major resistance is around 84.55 and any break above targets 85.89 (Mar 10th 2017 high)/86.17.

It is good to sell on rallies around 84.35-84.40 with SL around 85.05 for the TP of 83.19/82.75.