Anybody down for a easy development correction play on a Loonie pair?

CAD/JPY has been forming greater lows for the previous few weeks, and it seems like one other take a look at of assist is within the works.

Try these neat retracement ranges forward of the June 2023 BOC assertion!

CAD/JPY 1-hour Foreign exchange Chart by TV

This foreign exchange pair is already in correction mode, as value retreated from the highs round 104.60 and is bouncing off the 38.2% Fib according to right now’s pivot level.

If this is sufficient to get Loonie bulls charging, CAD/JPY might resume the climb to the swing excessive and even till R1 (104.91) near the 105.00 deal with quickly.

A bigger pullback might nonetheless attain the 50% stage that coincides with the 100 SMA dynamic assist and 103.50 minor psychological mark.

A good deeper correction might take a look at the 61.8% Fib that’s proper on the space of curiosity, 200 SMA dynamic inflection level, and the 103.00 main psychological assist. Discuss confluence!

Technical indicators are hinting that the development continues to be our good friend, because the 100 SMA is above the 200 SMA whereas Stochastic is pulling greater already. These counsel that bullish vibes are current and that consumers are wanting to hop in once more.

I’d preserve a watch out for Canada’s Ivey PMI launch in right now’s New York session, as quantity crunchers are predicting an enchancment from 56.8 to 57.2.

Stronger than anticipated outcomes might get CAD merchants looking forward to a “hawkish maintain” from the BOC determination and even an precise charge hike!

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