CAD/JPY - A Small Move Down
|If we look at the 1-hour chart of CADJPY, we can see that the RSI is indicating to us that the currency pair is overbought, and that price has started to range over the previous 11 candles. All Ichimoku components are flat showing no directional bias, so we are like to see price range further, providing Tenkan Sen acts as support. If price breaks through Tenkan Sen we are likely to see price move down toward Kijun Sen, a downward movement of about 30 pips. If price fails to find support at Kijun Sen, then we could see a much bigger move towards Senkou Span A.
Looking at the 4-hour chart we can see that the price is about 50 pips away from both Sens. Tenkan Sen and Kijun Sen are both flat and aligned at price level 83.595 suggesting strong resistance at this level, Senkou Span A is also within 10 pips of both Sens at price level 83.500, further adding to the strength of the resistance at this area.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.