Key Points
- The Canadian Dollar after declining close to the 80.50 support against the Japanese Yen started a recovery.
- There CADJPY pair started an upside move, and broke a bearish trend line at 81.75 on the hourly chart.
- Recently in Canada, the Consumer Price Index (CPI) for April 2017 was released by the Statistics Canada.
- The result was below the forecast, as the CPI rose 0.4% (MoM), less than the forecast of 0.5%.
CADJPY Technical Analysis
The Canadian Dollar was under pressure this past week as it dived from 83.53 to well below 81.00 towards the 80.50 support against the Japanese Yen. Later, the CADJPY pair found support and moved above the 81.00 handle.
The pair is now above the 21 hourly simple moving average and the 38.2% Fib retracement level of the last decline from the 83.53 high to 80.65 low.
There was also a break above a bearish trend line at 81.75 on the hourly chart. At the moment, the pair is trading near the 61.8% Fib retracement level of the last decline from the 83.53 high to 80.65 low. A break above 82.50 is needed for a move towards 83.00 in the near term.
Canadian Consumer Price Index
Recently in in Canada, the Consumer Price Index (CPI) for April 2017 was released by the Statistics Canada. The market was positioned for an increase of 0.5% in the index in April 2017, compared with the previous month.
The outcome was below the forecast, as the CPI rose 0.4% (MoM), less than the forecast of 0.5%. In terms of the yearly change, the CPI was up by 1.6%, less than the forecast of 1.7%. Looking at the Consumer Price Index Core, there was a rise of 1.1%, which was very less compared with the forecast of 1.4%.
The CADJPY pair somehow managed to hold losses and the current recovery above 82.00 may gain pace towards 83.00.
