Key Points
- The Canadian Dollar is in an uptrend and may continue to trade higher versus the Canadian Dollar.
- There is a crucial ascending channel pattern formed on the hourly chart of CADJPY, acting as a support for the pair.
- Today in Japan, the National Consumer Price Index was released by the Statistics Bureau.
- There outcome was positive, as there was a rise in the CPI by 0.1% in Oct 2016, compared with Oct 2015.
CADJPY Technical Analysis
The Canadian Dollar traded higher above 84.00 against the Japanese yen, and remained in an uptrend. There is a crucial ascending channel pattern formed on the hourly chart of CADJPY, which is acting as a catalyst and taking the pair higher.
Currently, the pair is trading near the channel trend line support and the 23.6% Fib retracement level of the last leg from the 83.19 low to 84.35 high.
If you are looking to enter a buy trade, then consider it near the channel support trend line on the hourly chart of 84.00.
Japanese National Consumer Price Index
Today during the Asian session, the Japanese National Consumer Price Index was released by the Statistics Bureau. The market was aligned for a decrease in the price movements obtained by comparison of the retail prices of a representative shopping basket of goods and services.
However, the result was positive, as there was a rise in the CPI by 0.1% in Oct 2016, compared with Oct 2015. When we look at the National Consumer Price Index excluding fresh food, there was a decline of 0.4% in Oct 2016, compared with Oct 2015. This was in line with the market forecast.
Overall, the Japanese yen remains under a lot of pressure, as a result, the CADJPY pair may continue to trade higher.
