Fri, Jun 24, 2022 @ 23:25 GMT
HomeContributorsTechnical AnalysisCADJPY Loses Momentum But Stands above Ascending Trend Line

CADJPY Loses Momentum But Stands above Ascending Trend Line

CADJPY remains under pressure after the pullback on the 4-month high of 91.60. The pair plummeted towards the 88.50 support level and is now developing within the two medium-term simple moving averages of 50 and 100, at 88.60 and 89.12 respectively.

Looking at the daily timeframe, technical indicators are holding near their neutral levels. The MACD oscillator slid below its trigger line in the bullish area, however, the RSI indicator is pointing to the upside in the negative territory.

Upsides moves are likely to find resistance at the aforementioned 4-month high. Rising above this area would help to endorse the focus to the upside towards the strong psychological level of 93.00.

If price action drops below 88.50 (immediate support), there is scope to test the 23.6% Fibonacci retracement level at 87.65 of the up-leg with the low of 74.80 and the high of 91.60. Clearing this key level would see additional losses below the ascending trend line towards 86.80, which holds near the medium-term 200-SMA. The diagonal line stands since September 2016 and the price had several failed attempts to break it to the downside.

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