Swing area between 91.18 to 91.72 has been broken.
The CADJPY has resumed its push to the upside today on the back of "risk on" sentiment. With stocks racing higher, that dynamic tends to support the "risk on" commodity currencies like the AUD, NZD and CAD (with higher oil helping the CAD). Higher stocks also tends to hurt the JPY on flights out of the "relative safety of the JPY". That dynamic favors the CADJPY (along with AUDJPY and NZDJPY which are also higher today).
Technically, the CADJPY pair has made a "break" on the upward move today.
Looking at the weekly chart of the CADJPY, the 91.18 to 91.72 level is home to a number of swing levels going back to 2015.
Looking at the chart above,
- The week low from January 25, 2015 was at 91.72
- The week high from September 2017 was at 91.63
- The week high from December 31 week in 2017 was at 91.57
- The high from May 30, 2021 week was at 91.18
The price on Tuesday moved into this swing area (see post here), with the price moving to a high of 91.40, near the middle of the 91.18 to 91.72 area. The price rise stalled and waffled above and below the lower swing level at 91.18 since Tuesday.
Today, however, the price has continued the trend move higher, and in the process, has now moved above the higher extreme at 91.72.
The high reached 91.995 so far today. The current price is at 91.87.
What now?
Looking at the hourly chart below, the price has been able to stay above the 91.72 since breaking above earlier today. That level is now close support for traders. Stay above and the buyers remain in full control. Move below and traders will eye the 91.40 high from Tuesday. That is also near the upward sloping trendline on the hourly chart.
On a break below 91.40 and traders would look back toward the 91.18 level, followed by the rising 100 hour moving average currently at 90.952 (and moving higher).
If the trend higher is to increase the bearish bias, moving below the 100 hour MA is a requirement. Absent that, and the buyers are still holding onto control .
Until then, the buyers remain more in control.
On the topside the next upside target would come in at the upward sloping trendline currently cutting across at 92.166 (and moving higher - see hourly chart below). Above that, and there should be more upside momentum as the technical breaks start to attract more buying interest.
