CAD/JPY Price Analysis: Struggles at 100.60s and retraces towards the 100.00 figure
- The CAD/JPY remained downward pressured by falling oil prices and a risk-off impulse.
- From a daily chart perspective, the CAD/JPY is consolidating at around the 100.00-101.00 range.
- The CAD/JPY could shift downwards if buyers fail to hold prices above the 200-DMA.
The CAD/JPY faced solid resistance around 100.60 and retraced after posting a staggering 7.60% rally from March 24, when the pair printed its YTD low at 94.06. At the time of writing, the CAD/JPY is trading at 100.07, threatening to break below the 100.00 thresholds for the first time since April 14.
CAD/JPY Price Action
From a daily chart perspective, the CAD/JPY is neutral to upward biased, even though the pair broke above the 200-day EMA, lying at 99.90. Some fundamental news, like crude oil prices edging lower, weighed on the Canadian Dollar (CAD). In addition to the Relative Strength Index (RSI), turning flat and back-to-back bearish candlesticks could pave the way for a pullback.
If CAD/JPY breaks below the 200-day EMA, the 100-day EMA would be next at 99.26. If the pullback extends past the latter, a cluster of support lies at the 98.55/88 price level, the confluence of the 50 and 20-day EMAs, respectively., followed by April’s 5 cycle low at 97.09.
On the flip side, If CAD/JPY stays above 100.00, a test of the YTD high at 100.87 is on the cards. Once cleared, buyers could pose a threat to crack the 101.00 psychological level, followed by the next resistance, the November 30 high at 103.47.
CAD/JPY Daily Chart
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
