Key Points
- The Canadian Dollar traded towards 83.75 against the Japanese Yen where it faced resistance and moved down.
- The CADJPY pair recently broke a major support trend line at 83.20 on the hourly chart, which has ignited a sharp downside wave.
- In Japan today, the Money Supply M2+CD report for April 2017 was released by the Bank of Japan.
- The result was in line with the forecast, as the Money Supply M2+CD registered a rise of 4.3%.
CADJPY Technical Analysis
The Canadian Dollar moved nicely this week and broke the 83.00 resistance against the Japanese Yen. The CADJPY pair traded as high as 83.74 where it faced resistance and moved down. It broke the 21 hourly simple moving average and the 38.2% Fib retracement level of the last wave from the 82.06 low to 83.74 high.
The pair also cleared a major support trend line at 83.20 on the hourly chart. Later, it tested the 61.58% Fib retracement level of the last wave from the 82.06 low to 83.74 high where it found support.
The pair is currently recovering, but likely to face resistance near the 21 hourly simple moving average and a bearish trend line at 83.10-20.
Japan’s Money Supply M2+CD
Recently in Japan, the Money Supply M2+CD report for April 2017 was released by the Bank of Japan. The forecast was lined up for an increase of 4.3% in April 2017, compared with the same month a year ago.
The outcome was in line with the forecast, as the Money Supply M2+CD registered a rise of 4.3%. Recently in Canada, the New Housing Price Index (NHPI) for March 2017 was released by the Statistics Canada, which came in at 0.2%, just as the market expected.
Overall, the CADJPY may move a few pips higher, but likely to face resistance near 83.40.
