CAD/JPY held steady above a long-term support area, leaving the door open for possible upside moves.
Will the pair break above a key resistance zone soon?
We’re watching the daily chart for clues:
CAD/JPY Daily Forex Chart by TradingView
With oil prices on the rise and some optimism swirling around U.S. trade talks, the Canadian dollar is clawing back ground, giving the pair some upward momentum.
At the same time, the yen is losing its shine as a safe haven while traders dip their toes back into riskier plays, especially with the U.S. dollar staging a recovery.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S. and Canadian dollars, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
CAD/JPY just bounced off a major support zone near 101.75, the same level that held in March.
We’re watching the daily chart closely as the pair heads to a key resistance area. See, the 105.60 zone lines up with a potential Double Bottom “neckline” and also marked strong support back in late 2024.
If CAD/JPY breaks above this level and consistently trades above the moving averages and the R1 Pivot at 106.24, it could draw in more bullish pressure and push the pair toward previous areas of interest like 108.00 or 109.00.
But if buyers fail to hold control and price gets rejected at the neckline, we may see a dip back to the 103.80 Pivot Point line or even a retest of the 102.00 support that’s been solid all year.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!