CAD/JPY sellers challenging with key support
|On the 4-hour chart, starting the new year with a golden cross, the CAD/JPY has been trading above the 50 exponential moving average in an uptrend since the first of the month. As the price hits the bottom of its ascending channel, the bulls are on the lookout for a rebound.
In the event that they gain control of the market, they may be able to reach the 91.650 mark.
Defeating this obstacle could propel the price upwards to the next resistance at the level of 92.154, which is located right around the top of the bullish channel.
Moreover, the price rebound coincides with the RSI recovering from the bottom of its downtrend channel, suggesting an increase in buying interest.
Momentum has also crossed above the 100-line into bullish territory recently.
A different picture emerges from the MACD oscillator. Neither the MACD bar in the negative area nor the signal line's downward movement provides any encouraging signs for buyers.
Alternatively, suppose sellers manage to break the bottom edge of the channel clearly, passing the 90.802 barriers. In that case, they might aim for an initial hurdle around 90.611.
If the bearish forces intensify, the price will meet the lower support of 90.275 in the vicinity of the 200 EMA.
Important resistance levels:
91.650
92.154
Important support levels:
90.802
90.611
90.275
Momentum Oscillators:
RSI: Bearish.
Momentum: Bullish.
MACD: Bearish.
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.