FxWirePro: CADJPY Daily Outlook

Ichimoku Analysis (4-hour chart)

Tenken-Sen- 90.44

Kijun-Sen- 90.44

CADJPY is trading weak for the past two weeks and lost more than 100 pips on minor weakness in the Canadian dollar. The Canadian dollar has halted its 6 months of weakness and shown a minor pullback against the US dollar.  USDCAD recovered more than 200 pips from a low of 1.2000. The Canada May CPI came at 3.6% vs 3.5% y/y expected. The minor weakness in the yen is preventing the pair from downside.  The minor jump in yen is putting pressure on this pair at higher levels. USDJPY is declining after a sudden jump above 110.  Any breach below 109.17 (200-4H MA) confirms further bearishness. The intraday trend of CADJPY is bullish as long as support 90.30 holds.

On the higher side, the pair is facing resistance at 90.63.  Any indicative surge past targets 91/91.50/92.

The significant support is at 90.30, any decline below that level will drag the pair down till 90/89.74/89.48/89/88.69. Significant trend continuation only below 85. A dip till 83/80 is possible.

It is good to sell on rallies around 90.85-90 with SL around 91.25 for the TP of 89.15.