At the time of writing, CAD/JPY is the biggest mover today, down -53 pips. But it’s a rather tight race. Yen is generally speaking the stronger one on falling global treasury yields. But no currency is decidedly strong.
Meanwhile, the outlook of CAD/JPY is rather mixed and, admittedly, hard to determine. There are two scenarios with equal probability to us. Firstly, the corrective fall from 89.22 has completed with three waves down to 84.61. That is CAD/JPY has bottomed at 84.61 already and the next move is up through 86.98 resistance.
Secondly, such decline is not completed yet. And price actions from 84.84 are merely a sideway corrective pattern that’s skewed to the downside. That is, CAD/JPY should have another decline through 84.61 low.
We won’t object if our readers found the above view as nonsense. They’re actually quite useless for trading the pair. At this point, to us, CAD/JPY is a pair to avoid.
But anyway, break of 85.17 minor support will favor the bearish case and turn bias to the downside for 84.61 support first. Break will target 83.75 and below. On the upside, break of 86.25 will favor the bullish case and turn bias to the upside for 96.98 resistance.
