CAD/JPY Price Analysis: Uptrend halted around 110.00 amid a risk-on mood
- CAD/JPY sees a modest uptick, trading at 105.52, but momentum wanes near the 110.00 psychological barrier.
- The currency pair shows a neutral to bearish technical setup, with a pattern of lower highs and lower lows since hitting the YTD peak.
- A push above 110.00 could open the path towards September highs, while a pullback might see support near key Ichimoku levels.
The CAD/JPY advancement stalls some 25 pips shy of the 110.00 mark on Monday, even though market sentiment was upbeat due to speculation that most global central banks won´t raise rates further. The cross-pair is trading at 105.52, gains 0.19%.
From a technical perspective, the CAD/JPY is neutral to downward biased after peaking at a year-to-date (YTD) high of 111.16. Since then, the pair has printed successive series of lower-highs and lower-lows, reaffirming the current neutral-bearish bias.
Nevertheless, if CAD/JPY buyers reclaim 110.00, they would be poised to test the September 19 high at 110.44, followed by the 111.16 mark. A breach of that level would sponsor a leg-up toward 112.00. Conversely, if sellers stepped in, they could drag prices toward the confluence of Kijun-Sen and Senkou-Span B at around 108.92. Once the pair tumbles below the latter, the bear's next target would be the Tenkan-Sen level at 108.62 before dropping to the bottom of the Ichimoku Cloud (Kumo) at 107.71.
CAD/JPY Price Chart – Daily
CAD/JPY Technical Levels
Author
Christian Borjon Valencia
FXStreet
Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.
