Canada continues to try to recover back its lost position after the pandemic COVID-19, unfortunately, with the bundles of bad news, it seems to impossible, as they do not allow the CADJPY to follow the path of progress.

The same as the previous week, it again dropped itself badly with the price of 78.61. In order to push up, it needs the power of the strong force that it might get from its support levels, that works behind it.

This is fortunate for the CADJPY that it has the backup of three support levels, the first is the support of the Fibonacci level at 77.97, afterward the trendline at 75.16, and then the major horizontal support might assist it at 73.78.0

Although, these levels of support assist it, on the other side of the picture there are more than three resistance levels that are standing at the front of the price which could not allow the price to rise against it. At first, there is a major horizontal resistance that might hit it at 79.27, soon after it, there is the Fibonacci level at 80.64 and then the resistance of the trendline might hit at 81.58.

Including these resistance levels, there is also the packet of unfavorable updates, that constantly causes hurdles for the CADJPY, pointed out one of the latest news, i.e.

The Bank of Canada’s Consumer Price Index released on June 17, 2020, updated itself with the 0.7 percent index, which is less than the last month’s 1.2 percent index, and it also fails to meet the economist’s 1.4 percent criteria.

CAD’s purchasing power is being weighed down by inflation. The Bank of Canada is aiming for an inflation range ( 1% -3%).

Conclusion

In particular, for the short position holders, the decision at this stage becomes a little challenging as the CADJPY market is in a state of increasing and falling volatility. Whereas it can be handled by the long place holders, as it will improve sooner or later.