Key Points
- The Canadian Dollar made a nice upside move from the 86.30 support against the Japanese Yen.
- There is a major bearish trend line with resistance at 87.15 forming on the hourly chart of CADJPY.
- Recently in Canada, the Wholesale Sales for June 2017 was released by the Statistics Canada.
- The outcome was below the forecast, as there was a decline of 0.5%, more than the forecast of -0.2% (MoM).
CADJPY Technical Analysis
The Canadian Dollar remains in an uptrend and recently made a nice upside move from the 86.30 support against the Japanese Yen. The CADJPY pair is trading well above the 86.80 support and the 21 hourly simple moving average.
The pair is currently struggling to break the 76.4% Fib retracement level of the last decline from the 87.27 high to 86.33 low.
On the upside, there is a major bearish trend line with resistance at 87.15 forming on the hourly chart of CADJPY. On the downside, the 86.80 support and the 21 hourly simple moving average are important buy zone. There is also a bullish trend line on the same chart at 86.45.
Canada’s Wholesale Sales
Recently in Canada, the Wholesale Sales for June 2017 was released by the Statistics Canada. The market was positioned for a minor decline of 0.2% compared with the previous month.
The actual result was below the forecast, as there was a decline of 0.5, more than the forecast of -0.2%. It was also a lot worse than the last increase of 0.9%. The report stated that:
Wholesale sales declined 0.5% to $61.4 billion in June following eight consecutive monthly increases. Declines were recorded in five of seven subsectors, led by the food, beverage and tobacco subsector and the motor vehicle and parts subsector.
Overall, the CADJPY pair might decline a few pips, but more likely to find support near the 86.80 level.
