Nick Nasad
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Can CAD/JPY Push Through Resistanve at 94.75? Or Will It Get Turned Back?

The CAD/JPY has been in a 2-week downtrend, but the recent technical picture could be signaling a turnaround, at least for the beginning of next week or so.

  • In the 4-hour chart we see an important level of support setting up at the 94 handle.
  • The key would be a break of 94.75, which would open up a further retrace, though the probability is high that that level can remain a resistance zone and we move into a sideways range.
  • At the same time, we have pretty oversold conditions in the pair according to the RSI, which has turned up after bouncing along the 30 level.
  • We have a downward sloping resistance trend-line that is being tested and can also provide a clue to the bullish case if broken to the topside with an upside target would be 95.60.
  • While it will take more to end the general bearish bias that was established over the last 2, the action to end the week, certainly gives some evidence to a counter-trend wave developing.  

( Click below to see the price action since this analysis was taken)

- Nick