FxWirePro- CADJPY trend line break out (chart of the day)
CADJPY declined sharply on the weak Canadian dollar.. It hit an intraday low of 107.73 and is currently trading around 107.81.
Recent news about Donald Trump's proposed tariffs on Canadian goods has notably affected the Canadian dollar (CAD), also known as the "loonie." Trump has threatened to impose a 25% tariff on all imports from Canada and Mexico starting January 20, 2025, unless these countries address issues like illegal immigration and drug trafficking. This announcement raises concerns about the potential economic impact on Canada, which has strong trade ties with the U.S. Analysts warn that such tariffs could significantly slow Canada's GDP growth, especially in important areas like energy and automotive manufacturing. The Bank of Canada has stated that it will consider these tariffs in its economic forecasts. Additionally, higher import costs could lead to increased prices for Canadian consumers, potentially pushing inflation back up after it had started to ease.
Technicals-
The pair is trading below 34- and 55 EMA in the 4-hour chart.
The near-term resistance is around 108.20, a breach above targets 108.65/109/110/112. The immediate support is at 107.70, any violation below will drag the pair to 106.80/106.20/104.85.
Indicator ( 4 hour-chart)
CCI (14)- Bearish
ADX- Bearish
All indicators confirm a bearish trend.
It is good to sell on rallies around 108.20 with SL around 109 for a TP of 104.90.
