CADJPY advances above SMAs with soft momentum
CADJPY has been struggling within a narrow range in the near term with upper boundary the 83.96 resistance and lower boundary the 82.26 support barrier. The pair climbed above the bullish crossover of the 20- and 40-simple moving averages (SMAs) as well as above the 50.0% Fibonacci retracement level of the downleg from 89.25 to 76.60, near 82.90. The MACD oscillator is flattening above the trigger and zero lines, while the RSI holds in the positive zone.
Should the price extend its advances, the 83.96 barrier and then the 61.8% Fibonacci around 84.40 could be immediate resistances for investors to look for. A climb above these significant levels could turn the bias to a more bullish one and the market could head towards the 85.25 resistance, taken from the peak on December 13. If the latter permits for further upside rally the next stop could be around 86.25, registered on December 3.
On the other hand, a downside retracement could retest the 50.0% Fibonacci of 82.90, which stands near the 20-day SMA, before heading towards the 82.26, which overlaps with the 40-day SMA. Moving lower, the 38.2% Fibonacci of 81.42 and the 81.25 support could attract attention.
To sum up, CADJPY holds a slightly bullish profile in the short-term, following the pullback on the two-year low of 76.60.