CAD/JPY Rebounds from 84.90 Ahead of Tomorrow’s BoC Meeting

JFD Team JFD

CAD/JPY traded higher yesterday, after it hit support at 84.90. Nonetheless, the recovery was stopped slightly below the 85.35 barrier and then, the rate retreated somewhat. The pair continues to trade above the prior medium-term downside line taken from the peak of the 5^th of January, and also above the short-term upside support line drawn from the low of the 19^th of March. What’s more, it is trading above all three of our moving averages, which point north. Thus, we keep the view that the short-term outlook remains positive.

If the bulls manage to take charge from current levels and drive the battle above the 85.35 line, then we may see them targeting once again the 85.70 hurdle. Another break above that barrier could pave the way for the 86.00 territory, defined by the inside swing low of the 12th of February. The catalyst for a strong leg up could be a hawkish BoC tomorrow, something that may strengthen the case for an interest rate increase at one of its upcoming gatherings.

At their latest meeting, policymakers decided to keep policy unchanged and appeared more concerned over trade than they were in January. However, bearing in mind that fears over the prospect of a global trade war have eased recently, and headlines suggest that there has been a significant progress in NAFTA talks, we see the case for the Bank to sound more optimistic this time around.

Turning our attention to the short-term momentum studies, we see that the RSI rebounded from near its 50 level and its respective upside support line, while the MACD, already positive, shows signs of bottoming as well. It could cross back above its trigger line soon.

On the downside, a dip back below 84.90 could initially aim for our next support of 84.55, the break of which could see scope for more downside extensions, perhaps towards the 84.15 territory. This could be the case if the BoC disappoints CAD-bulls by sounding less upbeat than anticipated.

Are you interested in institutional-grade research? Sign up for our Weekly Strategic Report HERE – it’s free!

Article written by Charalambos Pissouros, Senior Market Analyst at JFD Brokers

You want more? Visit our Research Website HERE, or subscribe to our JFD YouTube Channel HERE. To contact Charalambos send an email to [email protected]

Boost your performance with JFD Brokers’ proven DMA/STP. Don’t change your style, change your broker!

Author

JFD Team

JFD

EUR/USD weakens to four-week lows near 1.1750

EUR/USD’s selling pressure is gathering pace now, approaching the area of multi-week troughs in the mid-1.1700s on Thursday. The pair’s intense decline comes on the back of another day of solid gains in the US Dollar, particulalry exacerbated following firm prints from the weekly US labour market.

GBP/USD drops further, hovers around 1.3460

In line with the rest of its risk-linked peers, GBP/USD faces increasing selling pressure and recedes toward the 1.3460 region, or four-week lows, on Thursday. Cable’s persistent pullback comes in response to the continuation of the recovery in the Greenback amid a solid US data and a divided FOMC when it comes to the Fed’s rate path.

Gold clings to daily gains near $5,000

Gold struggles for direction and clings to its daily gains around the key $5,000 mark per troy ounce on Thursday. The precious metal sticks to the bid bias amid reignited geopolitical tensions in the Middle East and despite marked gains in the US Dollar and rising US Treasury yields across the curve.

Ripple slips toward $1.40 despite SG-FORGE tapping protocol for EUR CoinVertible

XRP extends its decline, nearing $1.40 support, as risk appetite fades in the broader market. SG-FORGE’s EUR CoinVertible launches on the XRP Ledger, leveraging the blockchain’s scalability, speed, security, and decentralization.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.