Weekly Technical Outlook: CAD/JPY;Market Forecasts for October 5th – October 9th

• Resistance level   91.716, 92.055, 92.456
• Pivot Level  90.451
• Support Level  89.588

Technical Analysis

 

CAD/JPY is looking for consolidation pattern from 89.588 levels and is still in progress with stronger support holding the levels and the price action produced strong two bar reversal. A bullish candle indicates a shift in momentum to an upside bias with trend line support pair rebound from 89.588 area and looks for corrective pattern confirming an uptrend resumption.

We’d likely see more corrective upward bias trading while another rise is expected strongly with price action confirming the bullish movement. The pair should reach level at 91.716 and a break here could expect 92.055 levels and later at 92.456.

Meanwhile, we’re uncertain on the time needed to complete the consolidation and the strength of the rebound. But in any case, a break of 89.588 levels will dampen our bullish view on the pair and should continue with the current momentum to downside, making new lower low. Outlook remains bullish for week.

Economic

• Ivey Purchasing Managers Index
• Building Permits for the Canadian
• Housing Starts, Unemployment Rate Net Change in Employment
• Coincident Index for Japan
• Leading Economic Index followed by BOJ Press Conference, Current Account

 

Area of Interest

• Strong support at 89.588 area and rebound on the trend line.
• Two bar reversal with bullish movement strongly on the support area.
• Price action closed above support level with two bar reversal indicating shift in momentum.
• At Flip Area on weekly time frame rejecting levels.

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