Further Gains for CADJPY?
18th June 2015
Back in January a break below the 21 week moving average and bearish triggers in both RSI and Momentum yielded 3 weeks of strong selling pressure in CADJPY– 8 big figures. This was followed by a broad consolidation phase that was capped by a weekly Marabuzo line while Momentum and Strength was rebuilt.
Momentum was the first of our indicators that gave a positive signal as we moved into April. This was followed RSI and a break of the Marabuzo line and lastly buying through the moving average line (always a lagging signal but useful as confirmation that there is more to the move than a reaction.
Since that time gains have been steady as opposed to the sharp losses than marked price action at the beginning of the year. But this gives demand sustainability especially now CADJPY is tracking the top end of a positive Keltner channel.
With no technical sign of anything other than temporary and limited setbacks we project potential upside objectives of 102.33, this year’s peak, then projected levels of 103.47 and 104.44/69.
