FxWirePro- CADJPY Trade Idea

CAD/JPY trades higher despite trade war uncertainty. It hit a low of 105.13 and is currently trading around 105.99.

The Canadian currency has been falling against the American currency in recent times. Some of this is due to fear over future trade regulation, specifically that of new U.S. tariffs. Canada's rates are also lower than America's, so more investments make America an appealing option, decreasing demand for Canadian dollars. High unemployment with a bad Canadian economy is also making the currency fall.

Technical Analysis

CAD/JPY is currently trading above the 34- and 55-EMA on the 4-hour chart. The immediate resistance is at 108.35; a breach above this level could shift targets to 109.30/110. On the lower side, near-term support is at 107.50, and a break below this support could lead to declines toward 106/104.80/104.

Indicator Trends

 CCI (50)- Bullish

ADX (14)- Bullish

Trading Strategy Recommendation

It is good to buy on dips around 107.50 with a stop-loss set around 106.80 and a target price of 109.30.