CAD/JPY is in its bearish trend for a long period of time. Thus short positions look more attractive right now. In a short-term period, starting from October the 3-rd canadian dollar was rising against JPY but after reaching its highest high at the end of October, correction started.
On November 11 -th the pair broke the local trend line down and canadian dollar started falling down again. Simultaneously CAD broke 23,6% Fibo level.
The first target for the price is 200-EMA or 82,21. Next target is 50% correction or 81,685.
Indicators are reflecting the bearish trend . 9-EMA is heading down; MACD lines are decreasing; DMI are heading down too.
During the last week several macroeconomy indicators were published. They demostrated the slowing down in Canada:
• Building permits decreased in September by 6,5%
• Ivey PMI for October dropped below 49
This week we are expecting japanese GDP for the third quarter. According to analysts GDP has to grow by 0,2%. Meanwhile retail sales indicator in September increased significantly. Industrial production increased too. It hopefully means that GDP might be even better than forecasted and it definitely will give a positive impulse for JPY.