CAD/JPY begins to track below its 100-hour moving average

CAD/JPY H1 21-10

The key near-term level has been vital in maintaining the upside bias for CAD/JPY over the past few weeks and now that is being contested, as sellers look to try and seize back some near-term control in trading this week.

The 100-hour moving average (red line) stands at 92.48 so keep below that and the near-term bias switches from being more bullish to being more neutral instead.

The high today clipped 93.00 briefly and while the upside bias is still very much favoured in the big picture, there is perhaps some scope for a retracement in the short-term as buyers start to lose some of their recent momentum.

A drop below the 100-hour moving average opens up some room to explore between that and the 200-hour moving average (blue line), now seen at 91.80.

That said, the weekly chart still underscores the heavy upside bias in the pair:

CAD/JPY W1 21-10

And it would take sellers a push back below the 200-hour moving average pointed out above as well as a shove back below the 2017-2018 highs of 91.58-64 to convince of any sharper correction in the pair after the quick run higher in recent weeks.