CADJPY is one of three Japanese yen pairs that I held through the weekend. the other two pairs are EURJPY and SGDJPY as they share very similar price action patterns.
The selloff in December 2023 seemed short-lived to me so I found an opportunity to enter long earlier this month. My best guess for the selloff is the collective premature anticipation of interest rate cuts in 2024.
From a price action standpoint, I quickly developed another sentiment. High level summary below:
After a retracement, price failed to push to a new lower low.
The relative low forms a new range boundary.
Price breaks above the upper range boundary and holds, which signals further upside momentum.
I'm not the biggest fan of how this pair, along with EURJPY and SGDJPY, closed last week. Seeing two down days certainly poses a risk that this uptrend may not continue for the week ahead.