CADJPY is paring some of yesterday’s negative ground but remains slightly below the medium-term ascending trend line. Also, the price recorded a two-month low of 84.57 earlier today. From the technical point of view, the MACD oscillator suggests that the market could maintain the bearish movement near the zero line, however, the RSI indicator is moving higher below the 50 level.
Should the price head lower, traders could look for support around 83.72, which stands well below the rising trend line. Such a move would endorse the bearish structure and even lower, a break below this level would clearly challenge the 82.15 support.
On the other side, gains could try to overcome the 85.40 resistance and reach the 20-day simple moving average (SMA) around 85.90. If the market moves higher, the 40-day SMA could act as major resistance as well at 86.40. Further up, the attention would turn to the area around 87.00, a frequently approached zone on November 8.
In the bigger picture, CADJPY seems to be erasing the bullish view after the daily close below the eight-month diagonal line. However, today’s bullish movement could drive the price back above this hurdle, raising the prospect of false bearish signals.
