Soaring OIL Prices Could Make CADJPY HIT 100.000!

Soaring OIL prices has caused the LOONIE to strengthen considerably! On the other hand the JPY has lost ground against all the major currencies. The depreciation in the YEN is driven by the inflation fear in world's major economies caused by the conflict in eastern Europe and soaring OIL prices is not lending a helping hand to the JPY. With OIL prices predicted to keep soaring further this year, we can expect this pair to keep climbing steadily.

Now coming to the technical analysis part, we have a clear long term uptrend trend supported by the two weekly trendlines. For this trend to continue, we require a technical confirmation, in this case the monthly candle needs to close above 95.000 psychological resistance. After this we have to wait for the price to retrace to 95.000 psychological support before executing a LONG trade. Patience is everything in this trade, as the retrace would help us attain 1:1 RISK TO REWARD RATIO. A stop loss can be place just beneath the rising trendline just below 90.000 level. Take profit set at 100.000 psychological resistance.

Both the technical and fundamentals favor CAD appreciation In A Long run. So lets see what happens.

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