The Canadian Dollar is working well for recovery, after dropping considerably it took a turn to move upside. The CADJPY has gotten better after a big piece of economic news broke. So far as the technical orientation is concerned, it might still need some time before it becomes optimistic because the price in the latest upside step marked a higher low.
As of writing this article, the CADJPY has been quoted at 79.40. There have been quite recent economic releases that lead the Canadian Dollar (CAD) to increase against the Japanese Yen (JPY). And the one of significant publish is about International Merchandise Trade. The trade levels have not been so bad for the country at least better than the figures predicted by the economist such as $-3 B. It remained $-0.6 B, this month as compared to $-4.87 B, during the last month. Although the figure is dropped this month, still it managed to sustain around an acceptable level even after the market was affected by the brutal novel COVID 19 pandemic.
Moreover, there are serval levels of support on the downside of the value, which will also increase the worth of the CADJPY with the time later. At first, there is the major horizontal support of which lies immediately after the pair’s price at 79.25, soon after this, there is the Fibonacci level at 77.96, and then the trendline support stands at 75.86 as shown in the diagram below.
If we take into account the price action of the pair over the past few days, so the pair trading around current prices that may fit well for short-term positions and even long-term position holders won’t be disappointed with their investment because the pair has the potential to grow.