Canadian dollar looking for support against Japanese Yen
The Canadian dollar initially fell during the trading session on Monday but turned around to show signs of life again. Ultimately, we are at the bottom of a range and it looks as if the market is going to continue to find little bits and pieces of bullish pressure here. The Japanese yen is a safety currency, and the Canadian dollar of course is highly sensitive to crude oil. While the crude oil market has been somewhat range bound, it is more bullish than bearish, and of course the Japanese yen has been selling off as of late due to somewhat positive momentum coming out of the US/China trade situation.
We recently bounce from the 61.8% Fibonacci retracement level and it looks as if we are going to continue to try to fight to the upside. With that, a move above the ¥82 level should open up the door to the ¥82.50 level, and then possibly even the ¥83.50 level. This should be massive support underneath at the ¥81.25 level, an area that has caused a bit of a bounce recently. Because of this, it’s likely that we will continue to see buyers to send this market higher. All things being equal, this is more or less a “risk on trade”, and as a result it’s likely that we will continue to go higher, but it seems to be more or less of a grind than an easy trade. If we were to break above the ¥83 level, then the market is free to stretch its legs a little higher, perhaps even as high as ¥85. A breakdown below the ¥81 level would wipe out the upward momentum though. With that, the market probably goes looking towards the ¥80 level again, as it is the 100% Fibonacci retracement level.
We recently bounce from the 61.8% Fibonacci retracement level and it looks as if we are going to continue to try to fight to the upside. With that, a move above the ¥82 level should open up the door to the ¥82.50 level, and then possibly even the ¥83.50 level. This should be massive support underneath at the ¥81.25 level, an area that has caused a bit of a bounce recently. Because of this, it’s likely that we will continue to see buyers to send this market higher. All things being equal, this is more or less a “risk on trade”, and as a result it’s likely that we will continue to go higher, but it seems to be more or less of a grind than an easy trade. If we were to break above the ¥83 level, then the market is free to stretch its legs a little higher, perhaps even as high as ¥85. A breakdown below the ¥81 level would wipe out the upward momentum though. With that, the market probably goes looking towards the ¥80 level again, as it is the 100% Fibonacci retracement level.