CAD/JPY forecast for January 14
Looking at the chart on the weekly time frame, we see a bullish trend with a break above MA100 (blue line) with support for MA20 and MA50. We can expect the bullish trend to continue in the coming period, and we can look for potential resistance up at 83.00, where the pair will meet the moving average of the MA200. Good oil prices jumped above $ 50 a barrel, and vaccines reduced business risks with their implementation and the start of global coronavirus vaccination. Some bullish current maximum we can ask for between 83-84.00.
On the daily time frame, we see that we have a woman at 81.50 and that the couple managed to break through and move up to higher levels. The pair also has support for all ho moving averages on this time frame. Our target maybe the previous high from February last year. Setting the Fibonacci retracement level, we see support at 61.8% at 80.50, break above and continue towards the Fibonacci level of 78.6%. We need a break below 80,500 and a Fibonacci of 61.8for the bearish scenario % as a safer sign of a trend reversal.
On the four-hour time frame, we also see a strong bullish trend with a break above 80.55, a zone that has been resisting so far, and if the pair stays above, there is likely to become good support for the Canadian dollar to move towards 83.50. The first one above is our target of 82.50 and then 83.00, and the moving averages only push the pair up as support. If we are looking at bearish, we need a break below the moving average of the MA200 (purple line), the lowest support on this time frame.
From the news, we will single out the following:
The Bank of Japan has improved its economic assessment by three of the nine regions, and one by one, according to the latest Regional Economic Report released on Thursday. Although they noticed that their economy was in a difficult situation due to the influence of the new coronavirus, there were signs of growth in many regions. However, the impact of the revival of Covid-19 has recently been highlighted, primarily in the services industry, the bank noted. The state of emergency of COVID-19 in the country could be extended, Japanese Economy Minister Yasutoshi Nishimura said on Thursday. That will depend on the movement in the number of cases, he added. This comes after Prime Minister Yoshihide Suga said on Wednesday night that the government would temporarily suspend an arrangement that allows business travellers from 11 Asian countries and regions to enter Japan, effectively banning non-resident foreign travellers from entering. Restrictions on entry into force take effect from Thursday to February 7, when the state of emergency declared for 11 prefectures should expire, the Japan Times reported.
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.