[RealInose]

Selling CADJPY at 87.80 with a minimum target of 82.50.
Stop loss is at 89.20
Extended targets are 80.10 and 78.00

CADJPY shows weakness at good resistance


• Trend resistance from the high converges with horizontal levels around 89.00 - 90.00 on the weekly chart.

• Bearish daily reversal at the trend high posted yesterday. The last time the pair posted a bearish daily reversal, it fell over 300 points back down to the 55 day moving average.

• A failure to close the week above the 55 week moving average at 87.72 would suggest that the move up since the low in Jan 2009 is done for now.

• The 55 day moving average and channel base have provided good support and should be re-tested (currently at 82.15). Support below there, and extended targets, are 80.10 and 78.00.

• Weakness in Crude (which has failed to sustain above $68+ target) suggests short term weakness for CAD

• Further weakness in equities and lower long end yields in the short term should be JPY supportive.

[mark04]

Thanks for this post. It is very useful for the beginners.

Thanks