Forex Market: CAD/JPY daily forecast

During yesterday’s trading session CAD/JPY traded within the range of 93.20-93.55 and closed at 93.47.

At 09:14 GMT today CAD/JPY was adding 0.06% for the day to trade at 93.55. The pair touched a daily high at 93.59 at 8:16 GMT.

Fundamental view

Annualized number of housing starts in Canada probably increased to 177 000 in April from 156 823 in the previous month. Housing starts are considered as a key indicator, reflecting nation’s housing sector’ resilience. In case the number of housing starts rose more than expected, this would provide support to the loonie. Canada’s Mortgage and Housing Corporation will release the official numbers at 12:15 GMT.

In addition, selling prices of new homes in Canada probably rose 0.2% in March compared to a month ago, following a 0.2% increase in February. The New Housing Price Index is a key indicator, reflecting the health of nation’s housing market. In case prices surged more than anticipated, this would have a bullish effect on the loonie.

Statistics Canada will release the official data at 12:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case CAD/JPY manages to breach the first resistance level at 93.61, it will probably continue up to test 93.76. In case the second key resistance is broken, the pair will probably attempt to advance to 93.96.

If CAD/JPY manages to breach the first key support at 93.26, it will probably continue to slide and test 93.06. With this second key support broken, the movement to the downside will probably continue to 92.91.