Bearish sentiment in the global financial markets led many investors to the relative safety of the of the Japanese yen in the last couple weeks. As you can see from the weekly chart of the CADJPY, the currency pair is now tip-toeing its major support around the 92.00 zone. Over the last several months, the pair has marked a lower high indicating a deteriorating demand in the Canadian dollar or the loonie versus its counterpart in the Japanese yen. A fall below the 92.00 area effectively would trigger a breakdown from either a failure swing or a double top. Such may then lead it to quickly slide towards its next support at 84.00.
We are actually looking to short the Canadian dollar and at the same time go long on the JPY when the pair falls below 91.788. If that happens, we’ll place our stop 93.50 and our target or limit at 84.00.
For those who are interested in technical analysis or learning how to profit using charts, we have an upcoming Technical Analysis Course on February 22 – 23, 2014. For more information, you may send us a direct message here or text/call (+63) 917 899 90 09.
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