Forex Market: CAD/JPY daily trading forecast

Friday’s trade saw CAD/JPY within the range of 96.19-97.07. The pair closed at 96.59, losing 0.22% on a daily basis.

At 7:37 GMT today CAD/JPY was down 0.11% for the day to trade at 96.46. The pair touched a daily low at 96.40 at 4:25 GMT.

Fundamental view

Canada

The number of building permits in Canada probably declined 10.0% in July compared to a month ago, according to the median estimate by experts. In June permits, issued by the government, were 13.5% more, or the largest rate of increase since July 2013. Building permits, as an indicator, provide information regarding demand in Canada’s housing market. In case the number of permits fell more than anticipated, this might have a bearish effect on the Canadian dollar. Statistics Canada is to release its monthly report at 12:30 GMT.

Japan

At 23:50 GMT Bank of Japan will release the minutes from its most recent meeting on policy. The minutes offer detailed insights on central bank’s monetary policy stance. This release is closely examined by traders, as it may provide clues over interest rate decisions in the future. Moderate-to-high volatility is usually present after the publication. In case the minutes show a hawkish outlook, this usually supports the yen, while a dovish outlook usually has a bearish effect on the national currency.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 96.62. In case CAD/JPY manages to breach the first resistance level at 97.04, it will probably continue up to test 97.50. In case the second key resistance is broken, the pair will probably attempt to advance to 97.92.

If CAD/JPY manages to breach the first key support at 96.16, it will probably continue to slide and test 95.74. With this second key support broken, the movement to the downside will probably continue to 95.28.

The mid-Pivot levels for today are as follows: M1 – 95.51, M2 – 95.95, M3 – 96.39, M4 – 96.83, M5 – 97.27, M6 – 97.71.

In weekly terms, the central pivot point is at 96.42. The three key resistance levels are as follows: R1 – 97.24, R2 – 97.88, R3 – 98.70. The three key support levels are: S1 – 95.78, S2 – 94.96, S3 – 94.32.