The CAD/JPY pair edged higher, reaching 110.75 high. Now, it has retreated a little and now is located at 110.55 at the time of writing. After its strong rally, a temporary drop is natural. Still, the bias remains bullish, so an upside continuation is still in cards despite temporary retreats.
The currency pair rallied in the last hours as the Yen was weakened by the Japanese Yen Futures' drop. The CAD took the lead after the US reported better than expected data today. Tomorrow, the US economic figures could have a big impact. The Final GDP is expected to report a 2.2% growth versus the 2.1% growth in the previous reporting period, while the Final GDP Price Index may report a 2.0% growth. In addition, Unemployment Claims and Pending Home Sales could report worse data compared to the previous reporting period.
CAD/JPY 110.69 Key Resistance!
The CAD/JPY pair failed to retest the uptrend line signaling strong buyers. It has jumped above the weekly R1 (110.55) but it has found resistance at the 110.69 former high.
It has registered only a false breakout through this static resistance and now it has dropped a little.
CAD/JPY Forecast!
As long as it stays above the uptrend line, the CAD/JPY pair could resume its growth. Jumping and closing above 110.69 activates more gains. This is seen as a new buying opportunity.
