Nick Nasad
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CAD/JPY - The Start of New Trending Action

The CAD/JPY, after a 2 1/2 weeks of downswing, turned it around this week in a fairly convincing way. This follows the risk sentiment seen as a result of the debt ceiling debate, and if there is some progress this weekend, it should continue when we come back from the weekend. 

  • We had a clear trendline break, and have pushed above all the key moving averages (21, 55, 100, 200).
  • While we may expected some pullback, the idea now would be to see if we have some new trending action and follow-through to the topside (considering the news from Washington cooperates).
  • There are some pretty clear levels in this pair, including 95.60, the horizontal pivot that has acted as both support and resistance over the previous month, 96.30 and 96.65.
  • If the pair pushes back below the 94.75 area, we should be a bit concerned, as that was an important horizontal pivot that was cleared and a fall back below means the bulls are not fully in control.

For a look at the CAD/JPY with the most current price action, click below:

- Nick