CADJPY Going Up
The CADJPY breakout trade highlighted in September has just hit its first target and looks likely to continue higher towards target, given the current backdrop. The rally in oil prices has been a big driver of upside in CAD, fuelling increased BOC tightening expectations. Additionally, these increased expectations are creating divergence in policy outlooks between the BOC and BOJ, creating scope for further upside in in the pair. With this in mind, while above 88.21, bulls remain long towards 90.69. With the retail community more than 90% short and both MACD and RSI firmly bullish, there is strong upside conviction here.
Key Data to Watch
Canadian employment data today (alongside the US labour reports) will be key for this pair. A strong reading for CAD data will drive the rally further. Additionally, any USD upside on a strong NFP result will likely hurt JPY more than CAD, allowing room for the pair to continue higher 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.