CAD JPY

USD/JPY has fallen around 12% from its January high, but with several key levels of support nearby I am inclined to suspect this phase of the decline is much closer to the end than the beginning. CAD/JPY has formed a double bottom around a key support level, and AUD/JPY looks set to extend gains (over the near term).

Well, Trump's tariffs are not going away. In fact, they're on Canada's doorstep. And that was enough to send USD/CAD to a 5-year high late in the day on Thursday, which only adds to the excitement of month end flows and messy price action.

If my short bias for USD/CAD and long for USD/JPY come into play, it assumes CAD/JPY could outperform USD/JPY during a bout of yen weakness.

The narrowing interest rate differentials between Japan and the rest of the world has been a key theme in the improving Japanese yen forecast in the last couple of weeks.

Weaker oil prices could be a headwind to CAD/JPY, as could the increasing odds the BOJ move towards their next hike. So the fact that momentum turned lower on CAD/JPY around the 200-day SMA could be a bad omen for bulls.

The CAD/JPY trend has turned negative following this week’s big rally in the yen, while the USD/CAD will be in focus with the release of key US data in the coming days.

Bitcoin momentarily touched a record high before reversing lower in spectacular fashion, weigh in risk and sending the Japanese yen broadly higher.

USD/CAD continues to hold a range inside of a range, but CAD/JPY is bristling at resistance after having set a fresh 16-year high last week.

The Japanese yen has finally found some much needed support this week. It is all to do with the falls in global bond yields, and the unwinding of carry trades. US yields slumped earlier this week after US CPI fell more than expected, cementing expectations that the Fed (and other central banks) will no longer raise rates further

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CAD/JPY has piqued our interest ahead of today's economic data, which includes PMI's for Europe and the US and Canada's inflation and retail reports.