Chapter 2 CADJPY is falling down!
25/01/2023
Summary
Canadian Dollar Interest rate drives the market
Fundamental analysis
Canadian data in the economic calendar has been released today (BoC Interest Rate Decision) same as expected at 4.50% the market takes the results as negative for the CAD, On the other hand, the Japanese yen gaining strength supported by the bank of japan.
Canada BoC Interest Rate Decision
Previous 4.25%
Actual 4.50%
Technical analysis
In this 1-hour diagram chart, the market is trending down and breaking the previous demand zone at the 100 Fibonacci retracement level we expect the price to pull back to the last demand zone at the 50 Fibonacci retracement level which is now become the supply zone With a 20-moving average still pointing down, We expect the market will continue this downtrend to the oldest demand zone at 95.770.
Trading Recommendation
Trading Direction: Short
Entry Price: 96.788
Target Price: 95.776
Stop Loss: 97.241
