Forex Market: CAD/JPY trading forecast for Monday

During Friday’s trading session CAD/JPY traded within the range of 93.44-93.88 and closed at 93.74, losing 0.02% for the day and 0.11% for the week.

Fundamental view

The Japanese Current Account surplus probably widened to 0.323 trillion yen in April, according to the median analysts’ estimate. In March the nation’s current account surplus stood at 0.116 trillion yen.

The indicator measures the economic transactions between the national economy and the rest of the world for a certain period of time. As a rule, they are carried out between local and foreign units in the economy. They include: goods, services and income from financial aid, liabilities to foreign countries. The transaction is considered a financial flow that reflects the creation, transformation, exchange, transfer or reduction of economic value, leading to a change in the ownership of goods or assets, provision of services, employment equity.

The Japanese Ministry of Finance will release an official report at 23:50 GMT on Sunday.

Technical view

According to Binary Tribune’s daily analysis, in case CAD/JPY manages to breach the first resistance level at 93.93, it will probably continue up to test 94.13. In case the second key resistance is broken, the pair will probably attempt to advance to 94.37.

If CAD/JPY manages to breach the first key support at 93.49, it will probably continue to slide and test 93.25. With this second key support broken, the movement to the downside will probably continue to 93.05.