Fundamentals:
CAD:
Bearish
Pegged to commodities like oil. I think there is still a surplus of oil supply and it will overpower the actual demand for fossil fuel in the upcoming months.
Interest rates are okay so far for the CAD.
JPY:
Bullish
Number one safe haven
Risk off - threatening with cutting interest rates but I do not see it happening in the near future.
Big investors especially in European economies, but bad data is coming out of Germany and France primarily (biggest EU economies). Interest rates are going to get cut even more into the negative in the EU so the Japanse are bringing their money home safe and sound away from a looming economic crisis in the Eurozone further strengthening the JPY in my view.
Technicals:
Touched the trend line (downward sloping) on the daily timeframe. Looking for a retest and signs of rejection on the lower timeframes to get into a CADJPY short at around the 81.800 for a small position and if it reaches to the 82.000 resistance level for a bigger position.
Take profit region on the lower side of the range at around +- 80.800.
My stop loss would be well clear of the 82.25 level (somewhat wider stop loss to cancel out a manipulative push to the upside to take out stoplosses and create liquidity, only to then continue to the downside).
CAD:
Bearish
Pegged to commodities like oil. I think there is still a surplus of oil supply and it will overpower the actual demand for fossil fuel in the upcoming months.
Interest rates are okay so far for the CAD.
JPY:
Bullish
Number one safe haven
Risk off - threatening with cutting interest rates but I do not see it happening in the near future.
Big investors especially in European economies, but bad data is coming out of Germany and France primarily (biggest EU economies). Interest rates are going to get cut even more into the negative in the EU so the Japanse are bringing their money home safe and sound away from a looming economic crisis in the Eurozone further strengthening the JPY in my view.
Technicals:
Touched the trend line (downward sloping) on the daily timeframe. Looking for a retest and signs of rejection on the lower timeframes to get into a CADJPY short at around the 81.800 for a small position and if it reaches to the 82.000 resistance level for a bigger position.
Take profit region on the lower side of the range at around +- 80.800.
My stop loss would be well clear of the 82.25 level (somewhat wider stop loss to cancel out a manipulative push to the upside to take out stoplosses and create liquidity, only to then continue to the downside).