Forex Chart Of The Day: CADJPY BoC Disappoints Investors

The price of CADJPY has found resistance at the monthly level. Will the price continue to move lower?

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CADJPY Analysis

Fundamental Analysis

The Bank of Canada recently disappointed investors by moving rates to 3.75% rather than the desired 4.00%. This caused the Canadian Dollar to fall as expectations were not met by the central bank. The inflation rate in Canada remains high at 6.9% and the Bank of Canada wants to bring this lower. The Bank of Japan has not yet moved away from low interest rates and wouldn’t look to do so unless wages began to suffer. 

Technical Analysis

Looking at the monthly chart we can see that the price has made a strong upward move into the monthly resistance level at 109.50. Now the price has rejected this level we can assume the price is heading back to the lows towards 104.00.

However, before reaching this level we need to look at the hourly time frame. In this time frame we can see the price is working within a bearish channel. If the price continues to respect this channel then we could see the price move lower. The next level of support is 107.50, if this were to break then it would open the door for sellers to move price back to the 104.00 level. 

Did you see our USD Index Analysis? You can see it here.

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About The Author

Jonathan Kibbler

Jon Kibbler, our Senior Market Analyst, boasts over a decade of trading experience. He specializes in dissecting the intricacies of financial markets and sharing his expertise with precision. Jon’s insights have been featured at renowned events and platforms like Coindex, Forex Analytix, and Forex.com.

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