Short-Term Technical Outlook: CAD/JPY

Daily Forex Technicals | Written by DailyFX | Oct 30 08 06:53 GMT |

Currency Pair: CAD/JPY Chart: 60 Min Charts Short-Term Bias: Bearish Narrowing demands for carry trades towards the end of September fueled increased selling pressures for the CADJPY, but the pair has bounced back after hitting a low of 70.98 on 10/27 as investors raised their temperament for risk. Increased appetite for risk has certainly lowered demands for the low-yielding Japanese yen this week, and the pair is steadily approaching the 38.2% Fib retracement level. Over the next few hours, we may see the pair cross above the stated level, but the divergence from the 120 SMA paired with the overbought RSI signal suggests that the pair will move to the downside over the remainder of the trading session. DailyFX Disclaimer Investment in the currency exchange is highly speculative and should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only. Accordingly we make no warranties or guarantees in respect of the content. The publications herein do not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should obtain individual financial advice based on their own particular circumstances before making an investment decision on the basis of the recommendations in this website. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. All intellectual property rights are the property of Daily FX. Daily FX and its affiliates, will not be held responsible for the reliability or accuracy of the information available on this site. The content herein is provided in good faith and believed to be accurate, however, there are no explicit or implicit warranties of accuracy or timeliness made by Daily FX or its affiliates. The reader agrees not to hold Daily FX or any of its affiliates liable for decisions that are based on information from this website. Daily FX highly recommends that before making a decision, the reader collects several opinions related to the decision and verifies facts from at least several independent sources.