CAD/JPY is finding trend line resistance in its path higher at 83.740 and previous support turned resistance at 83.876. The path higher contains the 50 DMA at 84.175, the 100 DMA at 84.720 and the 200 DMA at 85.390. The resistance level at 85.750 prevented price from rising in April and a break above this point would point to a retest of the May high at 87.089. Above this level there is some space until the 89.600 area with the 90.000 round number a key point of interest.
The support of 82.983 can become important in the coming hours with a push down to 82.158 crucial for long positions. A loss of this area may result in a fall back to the 2018 low at 80.530. This is a major support level and area of interest with a loss pointing to a bearish outlook for the pair and signalling declines to lows from 2016 around 75.000, while also presenting a head and shoulders setup in the weekly time frame.
For more in-depth analysis and market forecasts visit our FxPro Blog.