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Forex Market Analysis: CADJPY has Reached the 84.18-83.86 Resistance Area

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Monday, June 19, 2017 3:00PM / MeriFX



Source: MERI FX


Fundamental Indication:
CAD
: Senior deputy Governor Carolyn Wilkins said that the Bank of Canada is encouraged by a broadening of economic strength, which includes gains across 70 per cent of industries, she also added that the gains are something Canada hasn’t seen since before the oil-price collapse nearly three years ago. These statements among others were seen as a “hawkish” direction from the country’s central bank towards its first rate increase in nearly seven years.

JPY
: The BOJ policy balance rate was kept unchanged with actual at -0.10%, previous -0.10% and forecast -0.10%. The BOJ governor, Mr. Kuroda’s speech at the BOJ press conference can influence the direction of the pair.

Technical Analysis
:
The pair has approached the 84.18-83.86 resistance area after a week of consistent rally except from on 14th June, 2017. The pair has also broken above its 53 days symmetrical triangle indicating a probable continuation of short term trend.

Scenario 1
:
·   
if the pair closes negative with a bearish candlestick confirmation, we advise a “SELL”

·    Stop loss at the high of the candlestick confirmation

·    First target price at 81.42

·    Second target price at 80.74

Scenario 2
:
·   If the pair rallies above the 84.18-83.86 resistance area and pulls back to it with a bullish candlestick confirmation, we advise a “BUY”

·  Stop loss at the low of the candlestick confirmation

·  First target price at 85.45

·  Second target price at 87.40

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