The swing zone between 91.18 and 91.72 has been broken.
CADJPY resumed its bullish surge today amid “risk on” sentiment. With equities on the rise, this momentum tends to support “risk on” commodity currencies like the AUD, NZD and CAD (with higher oil helping the CAD). Higher stocks also tend to hurt the JPY on flights outside “relative JPY safety”. This dynamic favors the CADJPY (with the AUDJPY and the NZDJPY which are also higher today).
Technically CADJPY paused the bullish movement today.
Looking at the CADJPY weekly chart, the 91.18-91.72 level harbors a number of swing levels dating back to 2015.
Looking at the graph above,
- The week of January 25, 2015 low was 91.72
- The week high for September 2017 was 91.63
- The week high from Dec 31, 2017 was at 91.57
- The week high for May 30, 2021 was at 91.18
The price moved into this swing zone on Tuesday (see article here), with the price hitting a high of 91.40, near the middle of the 91.18 area to 91.72. The price rise stalled and soared above and below the lower swing level at 91.18 since Tuesday.
The highest reached 91.995 so far today. The current price is 91.87.
Looking at the hourly chart below, the price has been able to stay above 91.72 since breaking above earlier today. This level is now close support for traders. Stay on top and buyers stay in full control. Move below and traders will see the 91.40 high from Tuesday. It is also near the ascending trendline on the hourly chart.
On a break below 91.40 traders would look back towards the 91.18 level followed by the rising 100 hour moving average currently at 90.952 (and rising).
If the uptrend is to increase the bearish bias, going below the 100 hour moving average is a requirement. Without it, and buyers are still in control.
Until then, buyers remain more in control.
On the upside, the next bullish target would be on the sloping trendline currently at 92.166 (and moving higher – see hourly chart below). Above that, and there should be more bullish momentum as technical breakouts start to attract more buying interest.