CAD/USD Forecast: Continues to Press Higher Against the JPY
The market is more likely than not going to continue to be noisy, but I still believe that if the situation stays the same, this is a situation where we continue to short the yen against everything.
By fighting interest rates rising in the bond market, they are essential to “printing unlimited yen”, and it’s worth noting that most currencies are starting to appreciate against the yen. In other words, this is about shorting the yen, not so much about buying the Canadian dollar. The market is likely to continue seeing upward pressure here, right along with other peers such as the CHF/JPY, GBP/JPY, and even the lowly euro against the Japanese yen.
Pullbacks at this point should continue to be buying opportunities, or perhaps put more specifically – opportunities to short the Japanese currency. The 50-Day EMA currently sits near the ?104.60 level and should continue to be worth paying close attention to. If we break down below there, then we could go down to the ?104 level after that. Because of this, the market is more likely than not going to continue to be noisy, but I still believe that if the situation stays the same, this is a situation where we continue to short the yen against everything.
If we were to break it down below the 200-Day EMA, then it’s possible that the market could change attitudes, but you would probably see this against other currencies as well, especially other currencies in the European region. The US dollar would be the last to turn around, but obviously, if that were to happen, the trend could be over with when it comes to shorting the yen. I don’t see that happening anytime soon, but it’s something that you should keep in the back of your head as the market will continue to see the occasional volatile movement. However, at this point, it does not look like anything is going to change anytime soon. I remain bullish.
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