CADJPY lost its shine after the BOC monetary policy. It hit a low of 106.60 and is currently trading around 106.68.
BOC reduced rates by 25 bpbs as expected to 4.25%. The central bank stated that preliminary indicators show that economic activity was soft in June and July.
Technicals-
The pair is trading below 34- and 55 EMA in the hourly chart.
The near-term resistance is around 107.25, a breach above targets 107.70/108/108.85. The immediate support is at 106.60, any violation below will drag the pair to 106/105.
Indicator ( hourly chart)
CCI (14)- Bearish
CCI (50)- Bearish
Average directional movement Index- Bearish. All indicators confirm a bearish mixed trend.
It is good to sell on rallies around 106.85-90 with SL around 107.25 for a TP of 105.70.
