Ichimoku Analysis (4-hour chart)
Tenken-Sen- 88.35
Kijun-Sen- 88.11
Previous week low- 87.10
Previous month high-91.18
CADJPY has taken support near trend line support and surged more than 150 pips on minor weakness in Yen. USDJPY formed temporary bottom around 109.53 and shown minor pullback till 110.44. The jump in US bond yield is preventing further upside. The Canadian dollar is trading weak against the USD for the past 1-1/2 months and has lost more than 500 pips on board-based US dollar buying. The intraday trend of CADJPY is bearish as long as resistance 88.80 holds.
On the higher side, the pair is facing resistance at 88.80. Any indicative surge past targets 91/91.50/92.
The significant support is at 88, any decline below that level will drag the pair down to 87.10. Significant trend continuation only below 87. A dip till 85/83 is possible.
It is good to sell on rallies around 88.65-70 with SL around 89.35 for the TP 85.
