Key Points
- The Canadian dollar moved down recently against the Japanese yen and traded below the 87.70 support.
- The CADJPY is currently trading below a bearish trend line on the hourly chart with resistance near 87.55-50.
- Today in Japan, the Labor Cash Earnings figure was released by the Ministry of Health, Labour and Welfare.
- The result was better, as there was a rise of 0.2% in Nov 2016, compared with the last reading of 0.1%.
CADJPY Technical Analysis
The Canadian dollar after trading as high as 88.43 against the Japanese yen found sellers, and moved down. There was a downside move, taking the CADJPY pair below the 21 hourly simple moving average and 87.70.
The pair traded as low as 87.01 where it found a support trend line on the hourly chart. It is currently moving higher, but facing resistance near a bearish trend line on the same chart at 87.50-55.
On the upside, the 38.2% Fib retracement level of the last decline from 88.43 to 87.01 may also act as a hurdle for gains in CADJPY.
Japanese Labor Cash Earnings
Today in Japan, the Labor Cash Earnings Indicator, which shows the average income, before taxes, per regular employee was released by the Ministry of Health, Labour and Welfare. The market was aligned for a rise of around 0.1% in Nov 2016, compared with the same month a year ago.
The result was above the forecast, as there was a rise of 0.2%, which was also better compared with the last reading of 0.1%. Later today, the Canadian employment Change figure will be released by the Statistics Canada. The result may have a great impact on the CAD and CADJPY.
Overall, it looks like the CADJPY pair may continue to struggle as long as the pair is below the 21 hourly SMA at 87.70.
