Key Points
- The Canadian Dollar gained traction and moved above 81.50 against the Japanese Yen, considering the positive French election outcome.
- The CADJPY pair is now well above a bearish trend line with resistance at 81.05 on the hourly chart.
- Recently in Japan, the Leading Economic Index for April 2017 was released by the Cabinet Office.
- The outcome was better than the forecast, as there was a rise in the index from the last revised reading of 104.7 to 104.8 in April 2017.
CADJPY Technical Analysis
The Canadian Dollar opened with a gap up to 81.85 against the Japanese Yen. Most Yen pairs opened higher, and it looks like CADJPY posted good gains above 81.50. The pair traded as high as 81.85, and started correcting lower.
The pair moved down and traded towards the 23.6% Fib retracement level of the last wave from the 80.57 low to 81.85 high where it found support and moved higher once again.
The pair is now well above the 81.20 resistance, and a bearish trend line with resistance at 81.05 on the hourly chart. These are positive signs, and means the pair may continue to head higher as long as above 81.20 or 81.00.
Japanese Leading Economic Index
Today in Japan, the Leading Economic Index for April 2017 was released by the Cabinet Office. The forecast was lined up for economic indicator that consists of 12 indexes to increase from 104.4 to 104.5 in April 2017.
The result was better than the forecast, as there was a rise in the index to 104.8 in April 2017. The last reading was also revised up from 104.4 to 104.7. So, overall the index posted a positive increase in April 2017.
Overall, the CADJPY pair may remain in the bullish zone due to risk on sentiment, and may soon attempt a break above 81.85.
