$CADJPY ready to rally off #Poloz- Bank of Canada's Statement
Immediate resistance stands at 96.500 area. (Red)
Which also lines up with the .618 Fibonacci area of the longer bearish trend. (2014- 12 - 26 to 2015 - 02 - 01).
The 96.500 area has already acted as resistance
once(Red). This time around we are looking for this
resistance break to easily as we have BOC statements supporting this rally.
The market has taken Poloz (Bank of Canada) statement as hawkish for CAD in the short term.
To Summarize :
Central bank wants to see how the economy responds to the last rate cut and oil prices.
They believe January rate cut gives greater confidence of reaching full capacity and stable inflation by the end of 2016
The only dovish statement is :
"We are in an uncertain setting"
On the BOJ side they have not leaned back on there QE program as of yet.
Which also lines up with the .618 Fibonacci area of the longer bearish trend. (2014- 12 - 26 to 2015 - 02 - 01).
The 96.500 area has already acted as resistance
once(Red). This time around we are looking for this
resistance break to easily as we have BOC statements supporting this rally.
The market has taken Poloz (Bank of Canada) statement as hawkish for CAD in the short term.
To Summarize :
Central bank wants to see how the economy responds to the last rate cut and oil prices.
They believe January rate cut gives greater confidence of reaching full capacity and stable inflation by the end of 2016
The only dovish statement is :
"We are in an uncertain setting"
On the BOJ side they have not leaned back on there QE program as of yet.