CADJPY Movin' On Up
The recent CADJPY bull flag trade has now triggered. The market broke out above the bear channel top and has now breached the 102.17 level. With MACD and RSI turned bullish the focus is on a continuation higher towards the 105.33 level. The driver behind the current move is primarily JPY weakness amidst USD strength and better risk appetite. While this theme continues we can expect the pair to continue higher.
Yesterday’s BOC rate hike has also helped lift the pair. With the BOC hiking by .5% and signalling further such hikes to come over the year, the divergence between the BOC’s policy stance and the BOJ’s means that CADJPY is likely to continue higher near term.
Keep an Eye On
The US labour market data tomorrow will be the final key data of the week. If USD continues higher on the back of tomorrow’s release we can expect JPY to come under greater pressure, leading the pair higher. However, should tomorrow’s data fuel any USD downside, CADJPY is likely to dip lower near-term.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.