In previous analysis from December 8 entitled “on its way to support at 88.90” I wrote that after breaking 90.70 level, falls will test 88.90 level. That in fact happened, but supply didn’t stop the pressure at that level and last Friday support was broken. Until yesterday there was a rebound which ended today and price already returned to declines.
Currently situation looks very bad for demand side. Upward movement which we saw this week was just a re-test of new resistance. It is likely that declines will become a further direction. Only return above 88.90 level could change declining sentiment on CADJPY. The nearest support can be found at: 87.40, and another in the area 85.00. Resistances are at levels: 88.90, 90.70.
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