Selloff in Yen continues today, lifted by global benchmark treasury yields. US 10-year yields resumes the medium term up trend and breaches 2.1 handle. Germany 10-year yield is up at above 0.35, breaking above February’s high. UK 10-year gilt yeas is also above 1.59, and should make a similar upside breakout soon.
CAD/JPY is benefiting from Yen’s weakness. With 92.16 resistance taken out, CAD/JPY is resuming the rise from 87.42. Immediate focus is now on 93.00 high, Firm break there will resume larger up trend from 73.80. Next near term target is 61.8% projection of 87.42 to 92.16 from 89.21 at 93.95. Decisive break there could prompt upside acceleration to 161.8% projection at 96.83. Nevertheless, break of 91.46 minor support will delay the bullish case and bring pull back first.
