FxWirePro: CADJPY Daily Outlook

Ichimoku Analysis (Daily chart)

Tenken-Sen- 86.50

Kijun-Sen- 86.865

CADJPY recovered sharply after BOC monetary policy. The central has kept its interest rates unchanged at 0.25% and tapers bond-buying by $1B/week to $3B/ week. It has upgraded its economic outlook to 6.5% in 2021 from January forecasts of 4.0%. The rates are also expected to rise much sooner than the previous forecast of 2023. The minor strength in Yen is preventing further upside. USDJPY is holding below 108, break below 107.85 confirms trend continuation. The overall trend is bullish as long as support $62.50 holds.   The short-term trend of CADJPY is bullish as long as support 84.80 holds.

On the higher side, the pair is facing resistance at 87.  Any indicative surge past targets 87.62/88/88.30.

The significant support is at 85.40, any decline below that level will drag the pair down till 84.80/84.05/83.25. Significant trend continuation only below 83. A dip till 80/79.60 is possible.

It is good to buy on dips around 85.80-85 with SL around 84.80 for the TP of 88.30.