Shorting the CADJPY is such a powerful tool for portfolios in today's market environment. The trade benefits from 3 fronts: (1) NAFTA headwinds for the CAD, (2) Geopolitical risk-off dynamics of the JPY, and (3) Equity underperformance.
Attractive technicals and fundamentals for this trade. Plenty of JPY longs have been liquidated over the past week, but the...
- NAFTA Negotiations uncertain, any signal at termination would cause loonie to sell-off
- JPY tight inverse correlation to global stock market, therefore a sell-off in markets would benefit this positioning
- Clean break of uptrend
- 100 Day MA crossover
- Ichimoku transition line crossing baseline
Good evening comrades,
With the recent rally in the loonie resulting from multiple interest moves by the BOC, I'm looking to form a consus regarding the posoitoning of the market going into tomorrow's report. Personally, I beleive that the data release will result in a downside correction for the CAD seeing as the currency incredibly firm already. Now, putting...
After a tremendous run, the CAD/CHF currency pair is showing some notable technical reversal signs. With both the MACD and RSI turning over compounded with the fact that the euro trade is getting incredibly crowded, this is looking like a great time to get short.