CADJPY : ANOTHER BEARISH BREAKOUT
- Similarly to our previous analysis on USDJPY, the CADJPY pair has been trading above a bullish trend line for 7 months ; the mid-term trend was bullish.
- Since the impact around 118.85, the market has registered a sharp pull-back that first led prices back to their bullish trend line around the 23.6% Fibonacci support above 115.385, before a bearish break-out occurred.
This bearish break-out was initially anticipated by the RSI indicator, which took place following a bearish divergence inside the overbought zone.
Both moving averages are now reversing to the downside, but a bearish is cross is still yet to be seen.
- Just like the current situation seen on the USDJPY pair, it is hard to say whether the current correction will go much deeper or not.
However, 113.25 (38.2%) and 111.50 (50%) should be seen as interesting targets for this bearish movement.
Pierre Veyret, Technical Analyst at ActivTrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
- Since the impact around 118.85, the market has registered a sharp pull-back that first led prices back to their bullish trend line around the 23.6% Fibonacci support above 115.385, before a bearish break-out occurred.
This bearish break-out was initially anticipated by the RSI indicator, which took place following a bearish divergence inside the overbought zone.
Both moving averages are now reversing to the downside, but a bearish is cross is still yet to be seen.
- Just like the current situation seen on the USDJPY pair, it is hard to say whether the current correction will go much deeper or not.
However, 113.25 (38.2%) and 111.50 (50%) should be seen as interesting targets for this bearish movement.
Pierre Veyret, Technical Analyst at ActivTrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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