Chart Of The Day: CADJPY Extends Its Downside

February 10, 2016 06:22

While pullbacks from 79.00 mark propelled the CADJPY towards testing a month's high, the pair failed to clear the 87.00 – 87.40 broad resistance area, encompassing 50% Fibonacci Retracement of its August 2015 – January 2016 decline and the 50-day SMA, indicating renewed downside to the January lows near 79.00 round figure mark; though, 81.00 might act as intermediate support. Should the pair continue on it's south-run below 79.00 chances of its plunge to 61.8% FE level of the said downturn, at 76.50, can't be denied.

However, pair's bounce from the current levels need to close above 23.6% Fibo level resistance of 83.00 in order to test the 84.00 and the 38.2% Fibo, near 85.50. If the pair successfully trades above 85.50, 50-day SMA, at 85.80 now, is likely as a buffer resistance before the 87.00 – 87.40 region comes into play, which if broken can fuel the pair's rally towards 89.00 and the 90.50 consecutive upside levels.

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