Forex Market: CAD/JPY daily trading forecast

Yesterday’s trade saw CAD/JPY within the range of 95.36-95.99. The daily high has also been the highest level since February 18th, when a high of 96.37 was recorded. The pair closed at 95.83, up 0.09% on a daily basis and extending gains from Friday.

At 9:27 GMT today CAD/JPY was down 0.09% for the day to trade at 95.74. The cross touched a daily low at 95.46 during the Asian trading session.

Fundamentals

Canada

Canadian Gross Domestic Product (GDP) probably expanded at an annualized rate of 2.0% in the fourth quarter of 2014, according to the median forecast by experts, following a 2.8% expansion in Q3 compared to the same quarter of 2013. Canadas economy grew at an annualized pace of 3.6% in Q2, or the strongest since Q3 2011, when a growth rate of 4.2% was reported.

The report on GDP is closely watched by traders, operating in the Foreign Exchange Market, as they will look for higher rates of growth as a sign that interest rates may follow the same direction. Higher interest rates will attract more investors willing to purchase assets in the country, which will increase demand for the local dollar.

In case, however, Canadian economy grew a slower-than-expected pace, this would have a bearish effect on the Canadian dollar. Statistics Canada is expected to release the official figure at 13:30 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 95.73. In case CAD/JPY manages to breach the first resistance level at 96.09, it will probably continue up to test 96.36. In case the second key resistance is broken, the pair will probably attempt to advance to 96.72.

If CAD/JPY manages to breach the first key support at 95.46, it will probably continue to slide and test 95.10. With this second key support broken, the movement to the downside will probably continue to 94.83.

The mid-Pivot levels for Monday are as follows: M1 – 94.97, M2 – 95.28, M3 – 95.60, M4 – 95.91, M5 – 96.23, M6 – 96.54.

In weekly terms, the central pivot point is at 95.20. The three key resistance levels are as follows: R1 – 96.28, R2 – 96.99, R3 – 98.07. The three key support levels are: S1 – 94.49, S2 – 93.41, S3 – 92.70.