CAD/JPY Price Analysis: Uptrend halted around 110.00 amid a risk-on mood
- CAD/JPY sees a modest uptick, trading at 105.52, but momentum wanes near the 110.00 psychological barrier.
- The currency pair shows a neutral to bearish technical setup, with a pattern of lower highs and lower lows since hitting the YTD peak.
- A push above 110.00 could open the path towards September highs, while a pullback might see support near key Ichimoku levels.
The CAD/JPY advancement stalls some 25 pips shy of the 110.00 mark on Monday, even though market sentiment was upbeat due to speculation that most global central banks won´t raise rates further. The cross-pair is trading at 105.52, gains 0.19%.
From a technical perspective, the CAD/JPY is neutral to downward biased after peaking at a year-to-date (YTD) high of 111.16. Since then, the pair has printed successive series of lower-highs and lower-lows, reaffirming the current neutral-bearish bias.
Nevertheless, if CAD/JPY buyers reclaim 110.00, they would be poised to test the September 19 high at 110.44, followed by the 111.16 mark. A breach of that level would sponsor a leg-up toward 112.00. Conversely, if sellers stepped in, they could drag prices toward the confluence of Kijun-Sen and Senkou-Span B at around 108.92. Once the pair tumbles below the latter, the bear's next target would be the Tenkan-Sen level at 108.62 before dropping to the bottom of the Ichimoku Cloud (Kumo) at 107.71.
CAD/JPY Price Chart – Daily
CAD/JPY Technical Levels
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.
