The consolidation in CAD/JPY
reflects the volatility
and circumstance in the oil
market. Crude oil
is nearly $50 as I write this post with the Fed’s easy money policy helping price along. Once the euphoria associated with this announcement subsides the reality of oil
overproduction by Saudi Arabia and others, the weakness in global demand and the increased efficiency amongst the major consumers will drive prices lower. Perhaps to $20/barrel.
Price finding resistance in the vicinity of 92.25 opens an opportunity for the price to return to the bottom of the range and ultimately much lower.