The quote’s latest weakness could be linked to the pullback in Canada’s main export item, WTI crude oil. The oil benchmark refreshed an eight-year high earlier in Asia on news of a pipeline explosion, as well as Russia-Ukraine tussles. However, the latest comment from the Turkish officials, stating that the oil pipeline will reopen in an hour, is likely to have triggered the black gold’s pullback to $85.26.

BULLISH AND BEARISH ENTRIES/ TARGET DESTINATIONS

On the 4-hour chart, starting the new year with a golden cross, the CAD/JPY has been trading above the 50 exponential moving average in an uptrend since the first of the month. As the price hits the bottom of its ascending channel, the bulls are on the lookout for a rebound.

In the event that they gain control of the market, they may be able to reach the 91.650 mark.

Defeating this obstacle could propel the price upwards to the next resistance at the level of 92.154, which is located right around the top of the bullish channel.

Moreover, the price rebound coincides with the RSI recovering from the bottom of its downtrend channel, suggesting an increase in buying interest.

Momentum has also crossed above the 100-line into bullish territory recently.

A different picture emerges from the MACD oscillator. Neither the MACD bar in the negative area nor the signal line's downward movement provides any encouraging signs for buyers.

Alternatively, suppose sellers manage to break the bottom edge of the channel clearly, passing the 90.802 barriers. In that case, they might aim for an initial hurdle around 90.611.

If the bearish forces intensify, the price will meet the lower support of 90.275 in the vicinity of the 200 EMA.

CADJPY Failed to Create a New High

Jan 19 2022