Over the past two years, CAD/JPY have been melting down in a downstream channel but the bulls might be able to reclaim power. Is there a shift in the trend?
We have a possible setup in working out on the CAD/JPY weekly map for longer-term players.
We can see that the pair formed a strong descending channel pattern that dates back to early 2018 and finished 90 minutes later.
We have a possible setup in working out on the CAD/JPY weekly map for longer-term players.
We can see that the pair formed a strong descending channel pattern that dates back to early 2018 and finished 90 minutes later.
Last year the pair dropped to 74.00 before rallying all other risk assets after liquidity has been flushed, a move by central banks around the world to stabilize the flailing economies due to the pandemic in 2020.
This pair is now back to a solid area of concern (81,50 acted as a resistance and support area) and the top of the downward channel line.
But is it the latest trend’s launch higher? Well, Canada is expected to bounce back, as well as oil demand (Canada’s main export), with hopes of recovery due to worldwide vaccine delivery. There is ample conviction, however, that recently the Bank of Canada has said that we will not see more stimulus movements for the time being.
Overall, the chances of CAD/JPY melting are better (particularly as the Canadian work update this week has optimistic surprises), but there is some danger that the latest strains of coronavirus could be an issue that again causes restrictions.
What do you all think? What do you all think? Watch CAD/JPY for a possible long-term selling of positions? If so, what are the orientation and entrance strategies? In the following line, let me know!
