Hello there Trading212 CFD’s traders? Hope you’re all doing well!
Recently, the CAD/JPY pair is showing a strong desire to cross an important resistance, previously known as support.
Remember that supports and resistances are Price REGIONS, not lines with a specific price (although Forex pairs love round prices)
In my humble analysis, I would like to show you my sincere look at this pair (CAD / JPY)
From this perspective, we can see this downtrend is a great historical one, which comes since 2014.
HOWEVER, if you check the Monthly chart, you’ll see this trend has started in 2007!
Click here to see the complete chart.
And by that, we can see it has been testing the ~ 76.000 region constantly.
From a daily perspective, we can see that the market has strongly broken the ~ 81.000 region shortly after the corona crash.
The pair tried to break the new resistance region many times during the 2020 year. But no luck.
Upcoming Canadian Events on Feb 5, 2021
Balance of Trade (DEC)
- Between 1970 and 2008 Canada had been recording trade surpluses every year. From 2009 the trade balance shifted to deficit, with an exception of 2011 and 2014. In 2018, the largest trade deficits were recorded with China, Germany and Mexico, while the biggest trade surpluses were recorded with the US, the UK and Norway.
Employment Change (JAN)
- In Canada, employment change refers to the change in the number of persons who work for pay or profit, or perform unpaid family work. Estimates include both full-time and part-time employment.
Unemployment Rate (JAN)
- In Canada, the unemployment rate measures the number of people actively looking for a job as a percentage of the labour force.
Source: Economic Calendar (dailyfx.com)
What I’m personally looking for?
The market might keep ranging a lot on this region and make possible false breakouts at a 4h chart.
However, this may be a great setup/opportunity for both Bulls and Bears.
- If the ~ 81.000 region turns into strong support again, we can see for REALLY GREAT Long opportunities.
- If it strongly refuses it, I’m looking for a nice and possible profitable swing trading, pointing to retest the great support of the ~ 76.000 region.
But how about you!?
Have you been looking at this pair recently?
What do you think about it?
Btw, please @Trading212 team, INCREASE THE MAX DRAWINGS
We’re limited to 15.
Thank you ^-^