CADJPY – Sentiment turns Positive

22nd May 2018

A Bearish Head & Shoulders pattern was completed in February with CADJPY targeting 82.00. That target was exceeded by almost 1  1/2 big figures but that negative tone has clearly ended. 

CADJPY reached a 16 month low in March with, since that time, buying interest dominating the cross since.  But until last week, a change to a positive bias for the medium term had not been confirmed. The moving averages for both spot CADJPY and the RSI indicator had not been breached on a weekly closing basis.

Despite failure to maintain last week’s peak those average lines were clearly exceeded at Friday’s close – a move confirmed by this week’s early upside that is taking CADJPY into the Ichimoku Cloud pattern. 

Initial targets are 87.11 & 87.87 with a breach above the latter point exposing sentiment to 89.10.

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