CAD/JPY Bearish Below March High; Break Sub-84.57 Fuel Losses
- CADJPY Rebound at risk- on the lookout for short-triggers
- Resistance at 86.21/ Broader Bearish invalidation at March high
- Updated targets & invalidation levels
Technical Outlook:Earlier in the month I highlighted the reversal off a key confluence resistance at basic trendline extending off the June highs. The decline extended into the low-week close (daily reversal close) at81.69 before rebounding. The near-term advance is once again approaching key areas of resistance with our broader outlook weighted to the short-side while below the 2016 high-day close at 85.53 with a breach above the March high needed to shift the focus higher. Interim support rests with the lower median-line parallel / 84.55 with a break below this region targeting the 50-line (red) & the 81.19. Critical support rests at 80.60 – a level defined by the 2016 (January AND February) low day closes.