Canadian dollar continues to struggle against Japanese yen
The Japanese yen has been one of the better performing currencies around the Forex world for some time as we continue to see a lot of tensions between the United States and China flare up. With the addition of tariffs again this past weekend, it makes sense that more people were running from the relative safety of the Yen. Beyond that, we have the Hong Kong protests, the Brexit, global slowdown issues, and a whole host of other potential problems.
On the other side of the equation we have the Canadian dollar which is highly levered to the crude oil market. Because of this, the Canadian dollar has been on the receiving end of the selling pressure as crude oil markets continue to wilt. In this scenario you have a bit of a “perfect storm” when it comes to the CAD/JPY pair falling.
Now that we are clearly below the ¥80 level, it’s obvious that selling pressure should continue. The 20 week moving average is decidedly below the 50 week moving average and it’s spread out perfectly. With that being the case it looks like longer-term traders are continuing to push as we are going to try to make our move towards the ¥76 level again. Short-term bounces should continue to be selling opportunities, at least until something changes either in the oil market, or if we get some calm in the fundamental side of things. At this point, neither looks very likely to happen so we are much more likely to see the ¥76 level get targeted before we see the ¥81 level get ahead. Obviously, you can expect volatility, and the occasional headline may cause a bit of a bump but look at this as an opportunity to pick up the Japanese yen at better pricing.
On the other side of the equation we have the Canadian dollar which is highly levered to the crude oil market. Because of this, the Canadian dollar has been on the receiving end of the selling pressure as crude oil markets continue to wilt. In this scenario you have a bit of a “perfect storm” when it comes to the CAD/JPY pair falling.
Now that we are clearly below the ¥80 level, it’s obvious that selling pressure should continue. The 20 week moving average is decidedly below the 50 week moving average and it’s spread out perfectly. With that being the case it looks like longer-term traders are continuing to push as we are going to try to make our move towards the ¥76 level again. Short-term bounces should continue to be selling opportunities, at least until something changes either in the oil market, or if we get some calm in the fundamental side of things. At this point, neither looks very likely to happen so we are much more likely to see the ¥76 level get targeted before we see the ¥81 level get ahead. Obviously, you can expect volatility, and the occasional headline may cause a bit of a bump but look at this as an opportunity to pick up the Japanese yen at better pricing.