Key Points
- The Canadian Dollar moved down and broke the 88.80 support against the Japanese Yen.
- There was a break below a short-term bullish trend line at 88.50 on the hourly chart of CADJPY.
- Today in Japan, the Nikkei Manufacturing PMI for July 2017 was released.
- The outcome was below the forecast, as the Nikkei Manufacturing PMI posted a decline from the last reading of 52.2 to 52.1.
CADJPY Technical Analysis
The Canadian Dollar after trading close to 89.70 against the Japanese Yen failed to retain the bullish momentum and moved down. The CADJPY pair traded lower and broke the 89.00 and 88.80 support levels along with the 21 hourly simple moving average.
There was a break below a short-term bullish trend line at 88.50 on the hourly chart. The pair traded as low as 88.05 and currently correcting towards the 23.6% Fib retracement level of the last decline from the 89.37 high to 88.05 low.
There is also a bearish trend line at 88.40 on the same chart. Above 88.40, the 21 hourly simple moving average and 38.2% Fib retracement level of the last decline from the 89.37 high to 88.05 low may act as hurdles.
Nikkei Manufacturing PMI
Today in Japan, the Nikkei Manufacturing PMI for July 2017 was released. The market was positioned for no change in the PMI from the last reading of 52.2.
The actual result was below the forecast, as the Nikkei Manufacturing PMI posted a decline from the last reading of 52.2 to 52.1. There was a decrease in growth for output and new orders. The report added that:
Growth of the Japanese manufacturing sector was sustained at a modest rate during July, supported by further gains in output, new orders and employment. However, in each case, rates of expansion were lower than seen in June, whilst export trade rose at the weakest pace in nearly a year.
Overall, the CADJPY pair is most likely to remain under pressure and it could even break 88.00 in the near term.
