CADJPY has been finding strong resistance on the 82.60 barrier, falling beneath the 20-simple moving average (SMA) in the daily chart. Since mid-January, the pair has been trading within a narrow range between the 61.8% Fibonacci of the downleg from 89.25 to 76.60, near 84.40, and the 80.90 support.
Having a look at the momentum indicators, the RSI is pointing down below the neutral threshold of 50 and the MACD is hovering near the trigger line and below the zero line.
A step lower could find immediate support at the 38.2% Fibonacci of 81.42 and the 80.90 hurdle. More downside pressures could drive the pair towards the 23.6% Fibonacci of 79.65, increasing bearish sentiment.
An advance above the 50.0% Fibonacci of 82.90 and the 40-day moving average could open the door for bullish actions until the 61.8% Fibonacci of 84.40. If there is a successful daily close above the aforementioned obstacle, the pair could push until 85.25, while a sharper move higher could shift the neutral bias to more bullish one, testing 86.25.
However, a break below the 38.2% Fibonacci and the 81.90 support could confirm the long-term negative momentum.
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