Canadian Dollar at lower Thursday before the 6-week low, which occurred against the backdrop of falling oil prices and their negative attitude to risk in the global market, reaching those target levels, which were determined traders, opening April 22 short positions in the Canadian dollar against the Japanese yen by 85 , 90.A pair of Canadian dollar / Japanese yen at the time of writing, was trading at 83.17, before falling to 82.26, its lowest level since March 23, and having overcome all three target levels - 83.66, the moving average for 200 days at 82.80 and 82.27.
On Thursday, the pair fell from more than 84, when oil prices plummeted. At the New York Mercantile Exchange / New York Mercantile Exchange, NYMEX / futures quotes on light, sweet crude fell by about $ 11 with more than 109 dollars a barrel to 7-week low of 98.25 dollars per barrel.
Pressure on the couple on Thursday also had increased risk aversion. This happened after the U.S. Labor Department reported that the number of initial claims for unemployment benefits in the week 24-30 April, taking into account the correction for seasonal variations rose by 43,000 to 474,000. According to the consensus forecast, it should have been reduced by 19 000. This increased the fears of investors about the prospects for the U.S. economy before leaving on Friday, U.S. data on the number of jobs outside of agriculture in April.
In the column of 22 April stated that the couple Canadian dollar / yen may fall to 83.66, Fibonacci retracement level of 50% of wave growth with a minimum of 17 March 77.78 to a maximum of 8 April 89.54. Also been suggested that in the event of a further fall of the couple can take aim at a moving average of 200 days, was then at 82.74 and 82.27 also on the level of correction of 61.8%.
This forecast was made after data on retail sales in Canada in February was below expectations, as was already weak, the January value was revised downward, eroding expectations of future rate hikes by the Bank of Canada.
Daily chart the pair then handed negative signals: a moving average over five days was below the moving average over 15 days and fell, and the slow stochastics indicator and convergence / divergence of sliding averages / MACD / show a decline.
Since then, a pair of the Canadian dollar / yen on April 28 rose to a maximum of 86.64, but was never able to exceed the maximum reaction 20 April 87.18, which offset the bearish technical picture.
