CADJPY Continues Higher
CADJPY is threatening to make a break for another leg higherhere. The pair has been trading within a well-defined bull channel over the recoveryoff the year’s lows. Price has recently been held in a small ascending trianglepattern against the 107.19 level resistance. With both MACD and RSI bullish, andthe retail market 85% short, there is plenty of room for a further move higherhere. Bulls can look for a break of highs targeting a move through 109.70s nextand a test of the channel top.
Keep an Eye On
CADJPY is currently being supported by the better risk sentimentwe are seeing so far this week. With risk assets, including oil, trading higheras USD peels back, CAD is benefiting nicely. Furthermore, the move higher in riskassets is helping to weaken JPY via reduced safe-haven inflows. While thiscurrent theme continues to play out, CADJPY should remain supported. Data wise,CAD CPI mid-week should help keep hawkish BOC expectations well locked in whilethe BOJ outlook report is likely to keep JPY subdued 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.