The Japanese yen is still licking its wounds after both CPI and the unemployment rate fell short of expectations.
The loonie has been trading in the 89.60-90.70 range to consolidate its gains. Last week’s pop caught the short side by surprise.
Stop-losses and momentum buying exacerbated the rally. This confirmed that buyers are still in control of the price action despite recent attempts to break lower.
There is a chance of a brief retracement towards 90.30 to cool off the RSI. January 2018’s high at 91.50 would be the next target.
