Ichimoku Analysis (Daily chart)
Tenken-Sen- 79.66
Kijun-Sen- 79.43
CADJPY is trading higher for 2nd consecutive days and jumped till 80.21 on a strong Canadian dollar. The broad-based buying in the Canadian dollar is mainly due to surging Crude oil prices. The BOC Governor Tiff Macklem said that there is a chance of negative interest rates if the coronavirus crisis worsens further in the near term.
WTI crude oil is trading higher and recovered more than $3.5 on output shutdown in the Gulf of Mexico and closure of Norway's largest oil field Johan Sverdrup due to union strike. Any violation above $41.50 targets $43/$43.75.
On the lower side, the pair is facing support at 79.60 and any violation below will take to the next level till 79.20/78.75
The near-term resistance is around 80.45, violation above targets 81/81.90 likely. Significant buying can be seen only above 82.
It is good to buy on dips around 79.80-85 with SL around 79 for the TP of 81.90.
