CADJPY Falls from 10-month High but Outlook Still Positive

Technical analysis of Forex market

CADJPY has been showing an upside tendency since May 7, creating higher lows along a tentative ascending trendline. Despite the latest pullback from a ten-month high of 82.10, the price is still above its simple moving averages (SMAs), though the technical indicators continue to reflect a weakening bias. The RSI is dropping in the positive area and the stochastic is approaching the oversold territory.

Immediate support to additional downside movements could come from the 20-day SMA currently at 80.77. Beneath that, the 40- and 100-day SMAs currently at 80.18 could be tested ahead of the 79.20 barrier could and the tentative ascending trendline around 79.00. Breaking lower, the 77.60-77.90 area could next come under the spotlight.

Otherwise, a jump above the ten-month high of 82.10 could initially take the price until the 84.73 resistance and then up to the 85.22 peak, registered on February 24.

Overall, CADJPY looks bullish and only a decisive fall below the uptrend line may shift this outlook to neutral.