Ichimoku Analysis (4-hour chart)
Tenken-Sen- 79.40
Kijun-Sen- 79.15
CADJPY recovered sharply from a low of 78.38 on Jul 10th, 2020. The intraday trend is bullish as long as support 79.28 holds. The jump was mainly due to bullishness in the Canadian dollar and crude oil prices. USDCAD is one of the worst performers this week and declined more than 200 pips from a high of 1.3600. The Canadian CPI came at 0.7% from a year ago vs 0.4% in May and Core inflation edged higher to 0.4% compared to previous -0.1%.
WTI Crude oil jumped sharply despite weak US crude inventory data. It hits an intraday high of $42.29 and is currently trading around $42.26.
On the higher side, the pair is facing immediate at 80.25 (200- day MA) and any violation above will take the pair to the next level till 80.55/81.15/81.93.
The near-term support is around 79.60 (support turned into resistance), an indicative break below targets 79.28/78.76/78.38. Significant selling can be seen only below 78.
It is good to buy on dips around 79.75-80 with SL around 79.25 for the TP of 81.80.
