CADJPY is struggling to accelerate its freshly revived negative bearing further below the 90.00 handle, where a support base has somewhat solidified since the end of January. The longer-term simple moving averages (SMAs) are steadier than the 50-period SMA, which has dipped, sponsoring the latest decline in the pair.
The Ichimoku lines indicate that negative forces have paused, while the Ichimoku cloud maintains its frail bearish tone. The short-term oscillators are also reflecting mixed signals in directional momentum as price action dissolves around the 90.00 level. The MACD is holding underneath its red signal line, while the stochastic oscillator is turning negative again. On the other hand, the RSI is drifting in bearish territory, implying frail negative momentum.
If the negative price trajectory persists, the immediate base of 89.93-90.00, which has been confronted multiple times since the latter part of January could put sellers to the test. However, if this minor foundation fails to keep the bears at bay, they may then challenge the 89.37-89.55 support border, the latter being the January trough. If selling pressures intensify further, the 89.00-89.12 barrier could draw traders’ focus ahead of the 88.72 low and longer-term supportive line pulled from the 77.90 level.
Alternatively, if buyers find traction from the 89.93-90.00 foothold, upside friction could commence from the 90.38 high and the red Tenkan-sen line overhead at 90.48. Pushing higher, a fortified section of resistance from the 100-period SMA at 90.65 until the 90.95 high could impede additional advances in the pair. However, in the event the bulls pilot beyond the cloud, the congested 91.38 and 91.48 barriers may come under fire before the bulls aim for the February 10 peak of 91.70.
Summarizing, CADJPY is sustaining a broader bullish structure above the 87.42 trough. That said, currently the price is trading closer to the lower part of a more sideways move in the pair, where the minor bearish tilt in the price is struggling to evolve into a correction towards the diagonal line.
