CADJPY Rally Continues
Following the brief consolidation around the bull channel top, price has since broken out above the 90.69 level and is sitting atop the channel also. While above here, the focus is on a further push higher towards the 91.60 level next. MACD and RSI are both showing bearish divergence here, however, so be aware for any dip below the 90.69 level. Below there, 89.24 is the next support to note. With oil prices moving higher here and equities remaining supported, there is still room for CAD to move higher here while JPY should remain weak due to reduced safe haven inflows.
Key Data to Watch
The next key release to keep an eye on is Canadian employment data on Friday. The market is looking for the unemployment rate to move up slightly to 8.2% from the prior month’s 8.1% reading. If the rate does increase, this could stifle any further upside in the short term. Alternatively, a strong reading should act as a driver for fresh gains.
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Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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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.