CADJPY Collapsing
CADJPY is on the watchlist today for short opportunities. The pair has been falling sharply lower this week while retail traders buy heavily into the decline. In light of this, the move looks to have further to go near-term. CAD has been under heavy pressure amidst the recent downturn in risk appetite. With US banking fears, Chinese demand concerns and Fed tightening expectations weighing on stocks and commodities, risk currencies such as CAD have come under heavy selling into the middle of the week. JPY on the other hand has been benefiting from strong safe-haven inflows.
Looking ahead today, the FOMC will be the main event risk. The Fed is expected to take a less hawkish outlook beyond today’s hike which might see risk appetite recovering if confirmed. However, if the Fed is seen pushing back against rate cut projections later in the year or downplaying recession risks and or leaving the door open to further tightening, this should see stocks selling off further pushing CADJPY lower as JPY appreciates on safe haven demand.
Technical Views
CADJPY The sell off in CADJPY has seen the pair reversing sharply lower within the bull channel, recently breaking below the 100.81 level. While below here the focus is on a test of the 99.09 level support next. This is a key pivot for price with a break opening the way for a deeper move down to a test of the channel lows and the 97.54 level below.
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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.