Fawad Razaqzada
TradingCandles.com
Earlier, we reported that the EUR/JPY could make a comeback thanks to the ongoing rally in stock markets, boosting the appeal of XXX/JPY pairs. Another potential reversal may already have taken place in the CAD/JPY, ahead of Canadian CPI data tomorrow.
The CAD/JPY has been printing bullish price action ever since the head and shoulders reversal pattern failed towards the end of March and the bears were trapped.
Today it bounced off its bullish trend line and support around 83.50 after initially extending its losses for two consecutive days earlier. Once again, the bears may have been trapped after it had formed a bearish-looking daily candle yesterday when the rally came to a halt near the 200-day moving average (84.33).
If I am reading this correctly, a rally above the 200-day SMA and previous high at 85.23 could be on the cards soon, with the next potential resistance seen around 85.60ish. However if the short-term bullish trend around 83.50 breaks first then all bets may be off.
Figure 1:
Trading leveraged products such as FX, CFDs and Spread Bets carry a high level of risk which means you could lose your capital and is therefore not suitable for all investors. All of this website’s contents and information provided by Fawad Razaqzada elsewhere, such as on telegram and other social channels, including news, opinions, market analyses, trade ideas, trade signals or other information are solely provided as general market commentary and do not constitute a recommendation or investment advice. Please ensure you fully understand the risks involved by reading our disclaimer, terms and policies.
Recommended Content
Editors’ Picks
AUD/USD hovers around 0.6500 amid light trading, ahead of US GDP
AUD/USD is trading close to 0.6500 in Asian trading on Thursday, lacking a clear directional impetus amid an Anzac Day holiday in Australia. Meanwhile, traders stay cautious due ti risk-aversion and ahead of the key US Q1 GDP release.
USD/JPY finds its highest bids since 1990, near 155.50
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, testing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming Japanese intervention risks. Focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold price treads water near $2,320, awaits US GDP data
Gold price recovers losses but keeps its range near $2,320 early Thursday. Renewed weakness in the US Dollar and the US Treasury yields allow Gold buyers to breathe a sigh of relief. Gold price stays vulnerable amid Middle East de-escalation, awaiting US Q1 GDP data.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Meta Platforms Earnings: META sinks 10% on lower Q2 revenue guidance Premium
This must be "opposites" week. While Doppelganger Tesla rode horrible misses on Tuesday to a double-digit rally, Meta Platforms produced impressive beats above Wall Street consensus after the close on Wednesday, only to watch the share price collapse by nearly 10%.