FxWirePro- CADJPY Trade Idea

CAD/JPY showed a minor pullback as the Canadian dollar gained momentum.  It hit an intraday high of 103.36 and is currently trading around 103.16.

U.S.-Canadian trade relations are on high alert following President Trump and Ontario Premier Ford backing down on tariff threats. Canada's future Prime Minister, Mark Carney, said that he is prepared to provide openness to negotiations on the trade talks with the U.S., but there will be a focus on the sovereignty of Canada being respected. Even though Canada just threatened retaliatory tariffs on CAD 29.8 billion imports from the United States, such reversals of further escalation are positive signs towards future negotiations even with current difficulties

Technical Analysis

CAD/JPY is currently trading above the 34- and 55-EMA on the 4-hour chart. The immediate resistance is at 103.65; a breach above this level could shift targets to 104/104.50/105/106/107.40/108/108.35/109.30/110. On the lower side, near-term support is at 102.30 and a break below this support could lead to declines toward 102/101.50.

Indicator Trends

 CCI (50)- Bullish

ADX (14)- Neutral

Trading Strategy Recommendation

It is good to sell on rallies around  103.25-30 with a stop-loss set around 104 and a target price of 101.60.