CAD/JPY Surges, Is More Upside in the Works?

JFD Team JFD

CAD/JPY surged yesterday, breaking two resistance (now turned into support) barriers in a row. The pair is trading above a tentative upside support line drawn from the low of August 25^th, and at the time of writing, it looks to be heading towards the peak of October 29^th, where a clear break would drive the rate in territories last tested in April 23^rd. So, having all that in mind, we would consider the near-term outlook to be cautiously positive.

A clear and decisive break above the high of October 29^th, at around 83.56 may encourage the bulls to drive the battle all the way up to the peak of April 17^th, at around 84.35. They may decide to take a break after testing that zone, thereby allowing the rate to correct back down. However, as long as it stays above the aforementioned upside line, we would see decent chances for another leg north and another test near 84.35. If that level gets broken this time, the advance may get extended towards the 85.17 barrier, which is fractionally below the high of March 1^st.

Taking a look at our daily oscillators, we see that the RSI lies above 50, pointing up, while the MACD stands slightly above both its zero and trigger lines, pointing up as well. Both indicators detect upside speed and support the notion for this exchange rate to continue drifting north for a while more.

On the downside, we would like to see a clear dip below 81.75 before we start examining the bearish case. Such a move would confirm the break below the pre-mentioned upside support line and could initially aim for the low of November 21^st, at around 81.28. Another move lower could extend the slide towards the 80.80 zone, the break of which could set the stage towards the psychological zone of 80.00.

JFDBANK.com - One-stop Multi-asset Experience for Trading and Investment Services

Author

JFD Team

JFD

EUR/USD bounces off lows, back to 1.1860

EUR/USD now manages to regain some balance, retesting the 1.1860-1.1870 band after bottoming out near 1.1830 following the US NFP data on Wednesday. The pair, in the meantime, remains on the defensive amid fresh upside traction surrounding the US Dollar.

GBP/USD rebounds to 1.3660, USD loses momentum

GBP/USD trades with decent gains in the 1.3660 region, regaining composure following the post-NFP knee-jerk toward the 1.3600 zone on Wednesday. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold stays bid, still below $5,100

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of humble gains in the US Dollar and firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.