CADJPY currency pair recently reversed from the support zone located between the strong support level 111.00 (which stopped earlier sharp downward impulse wave (C) at the end of July) and the lower daily Bollinger Band.
TL;DR: Brent's break above $90 is doing double duty for CAD/JPY — strengthening Canada's terms of trade while pushing global bond yields higher and deepening Yen funding pressure — and this time Canada's own data are contributing too, unlike June's Yen-only rally.
CADJPY currency pair recently reversed from the support zone between the key support level 111.85 (which has been reversing the price from January), 50% Fibonacci correction of the upward impulse from October and the lower daily Bollinger Band.
How Elliott Wave mapped the CAD/JPY drop
In today's blog post, we take a trip down memory lane and look back at a previous CADJPY analysis. This serves as a great example of how we use technical analysis to identify potential market moves.
CADJPY currency pair recently reversed up from the support zone between the support level 113.80, which has been reversing the price from March, lower daily Bollinger Band and the support trendline of the daily down channel from May.
CADJPY currency pair recently reversed from the support zone between the strong support level 114.00 (low of wave 2 from the end of March), lower daily Bollinger Band and the 61.8% Fibonacci correction of the upward impulse from February.
CAD/JPY continues to favor the upside, with oil strength supporting the Canadian dollar and 115.50 acting as key support for a move toward 118.