Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

CAD/JPY Rally May End, Oil At Top Of Range

ByAlan Posner
Published 05/18/2015, 03:44 PM
Updated 07/09/2023, 06:32 AM


CAD/JPY Strategy: Flat

The rally since 2-2 may come to an end, at least in the short term. Largely on the energy (pardon the pun) of a robust economy, the loonie has been rallying against the unsuccessful “Abenomics” strategy that keeps Japan stuck going nowhere.

Price consolidated from 3-5 to 4-14 and since the 15th has moved aggressively peaking at about 100. With the Japanese candlestick pattern “spinning top” on 5-5 and again on 5-13, price looks indecisive and a “double top” pattern has formed (albeit imperfect).

This price level providing resistance recently provided support 12-16 of 2014, when price dipped and rebounded sharply. With the price of oil now back under $60, perhaps traders believe this currency needs to pause before resuming an uptrend.

The resumption of an uptrend seems likely since the BOJ is more likely to attempt weakening the currency than let it appreciate, and while oil is at the top end of its range now, it will continue to be in demand for some time. There is short term support around 98.40 and a rising lower media line on the pitchfork in the chart. I am watching to see if either these lines provide support or if in fact price is going into a major correction. I am more likely in favor of the former than the latter.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.