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15 May 2015
CAD/JPY: Upside running out of steam?
FXStreet (Guatemala) - CAD/JPY is currently trading at 99.32with a high of 99.78 and a low of 99.10.
The recovery of oil prices since March has given the commodity currencies a lift. The price of oil hit a high of 61.85 this week and the Canadian dollar has been working its way back out of the 1.28 handle's highs and dropped over 800 pips since the middle of March. CAD/JPY has been a progressive and sure climb up to test space at 100.00 on the 11th May and now we await fresh impetus to gauge how much further upside potential there is. Next week we have
CAD BoC Governor Poloz Speech ahead of key CPI's and retail sales at the end of the week.
Analysts at TD Securities explained that CAD/JPY nosed above 100 earlier this week but said the move up is looking a little strained at the moment as gains remain hard to come by and hard to sustain, it would appear. "Longer-term trend momentum remains constructive, suggesting that near-term losses should be limited but the intraday charts do suggest some risk of additional weakness below 99.50/70 which may put short-term support at 98.25 under pressure. Monitor."
The recovery of oil prices since March has given the commodity currencies a lift. The price of oil hit a high of 61.85 this week and the Canadian dollar has been working its way back out of the 1.28 handle's highs and dropped over 800 pips since the middle of March. CAD/JPY has been a progressive and sure climb up to test space at 100.00 on the 11th May and now we await fresh impetus to gauge how much further upside potential there is. Next week we have
CAD BoC Governor Poloz Speech ahead of key CPI's and retail sales at the end of the week.
Analysts at TD Securities explained that CAD/JPY nosed above 100 earlier this week but said the move up is looking a little strained at the moment as gains remain hard to come by and hard to sustain, it would appear. "Longer-term trend momentum remains constructive, suggesting that near-term losses should be limited but the intraday charts do suggest some risk of additional weakness below 99.50/70 which may put short-term support at 98.25 under pressure. Monitor."