CAD / JPY buyers live to fight another day of trading this week
At least that is the case for now, as the pair is rebounding to its highest levels since Friday last week and is seen up 1% today at 86.80 levels.
Amid deteriorating risk sentiment on Monday and fears of Evergrande, the pair fell below key daily support from April low @ 85.42 but managed to avoid a dip to August low. @ 84.67 at least.
The weekly chart will still highlight a rebound off the April low as a particularly significant level from a technical standpoint, validating the rebound for buyers.
However, even with the pullback above the 200-day moving average (blue line) at 86.41 and the short-term buyers regaining control today in a push above the 200-hour moving average at 86.24, it still needs to be more convincing.
Rather, the price action on the whole is defined by the series of higher highs and lower lows since July and until it breaks (watch out for the September 3 high @ 87.89 in this regard. ), there are still questions regarding the last bounce.
However, the appearance of a double bottom model at 85.00 is a good start to build on.
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