CADJPY – End to Bull Trend?
16th November 2017
Tuesday 21st Nov – As you will have seen the negative concerns expressed in this post have been confirmed with a close below the average. Our medium term bias for CADJPY has changed to bearish with initial targets of 86.45 and 85.47.
CADJPY RSI signals produced a negative (dead) cross 3 weeks ago. That move was not replicated by a move in spot prices, although the market did move down to test the trend defining 21 week moving average. The bounce from there has not been an extensive one for CADJPY and this week’s decline is seeing that average line retested.
The bias for CADJPY, as noted on our Trend Table, has been bullish since mid-June when a spot ‘golden’ cross confirmed a similar positive break in RSI the previous week. Through to September’s peak the cross rose by almost 8 big figures but that trend is now under serious threat. Naturally we await the close in New York Friday as the determinant factor.
A close below the 21 week average, currently 88.81, will confirm a change in investor sentiment with the downside immediately targeting 87.78 and 86.45. Conversely a close above keeps an increasingly fragile bullish bias intact although CADJPY Bulls will want to see an early return above 90.78 to feel comfortable again.
