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.
The content of this material and/or any information provided should in no way be construed, expressly or by implication, directly or indirectly, as advice, recommendation, or suggestion of an investment strategy in relation to a financial instrument and is not intended to provide a sufficient basis for making investment decisions in any way. Any information, views or opinions presented in this material have been obtained or derived from sources believed to be reliable, but Errante makes no warranty as to their accuracy or completeness. Errante accepts no liability for losses arising from the use of this data and information. The data and information contained herein are for background purposes only and make no claim to be complete or comprehensive.
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