- CAD/JPY struggles to extend seven-day uptrend near the highest levels since 2015.
- Oil price recovery, cautious optimism previously favored bulls.
- Sluggish markets, wait for BOJ tests further upside of late.
- Canada Retail Sales, geopolitical headlines will also be important for fresh impulse.
CAD/JPY bulls keep eyes on the Bank of Japan (BOJ) monetary policy decision while flirting with the seven-year high around 94.00 during Friday’s Asian session. In doing so, the cross-currency pair pauses after consecutive seven days of an uptrend.
In addition to the pre-BOJ anxiety, mixed concerns over the Ukraine-Russia peace talks and China’s step back from the previous readiness to an easy regulatory crackdown on the property and IT companies also challenge CAD/JPY.
Furthermore, easing in prices of Canada’s main export, WTI crude oil also negatively affects the pair’s moves. The black gold rose the most in two weeks the previous day before recently easing to $103.30. Sour sentiment and IEA comments may have tested the commodity bulls of late.
Read: WTI surpasses $100.00 as IEA renews supply shortage worries
Elsewhere, the Bank of Japan (BOJ) has already signaled its readiness to keep the easy money flow continue and part ways from the global central banks, which in turn allows traders to prepare for a positive surprise and hence propel the pair before the event.
Read: USD/JPY Weekly Forecast: Federal Reserve and the Bank of Japan head for different exits
Looking forward, BOJ and the geopolitical headlines won’t be enough to predict CAD/JPY as Canada’s Retail Sales release for January is also on the calendar for publication. Should the key data match upbeat expectations of 2.4% MoM, versus -1.8% prior, the pair may have an additional reason to refresh the multi-day high.
Technical analysis
A fresh buying in the CAD/JPY pair can wait for a clear run-up beyond the 94.00 threshold. Following that the bulls can aim for an upward sloping trend line from May 2021, near 94.70.
On the contrary, the year 2021 peak near 93.00 restricts the short-term downside of the pair.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds gains near 1.0650 amid risk reset
EUR/USD is holding onto its recovery mode near 1.0650 in European trading on Friday. A recovery in risk sentiment is helping the pair, as the safe-haven US Dollar pares gains. Earlier today, reports of an Israeli strike inside Iran spooked markets.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD is rebounding toward 1.2450 in early Europe on Friday, having tested 1.2400 after the UK Retail Sales volumes stagnated again in March, The pair recovers in tandem with risk sentiment, as traders take account of the likely Israel's missile strikes on Iran.
Gold price defends gains below $2,400 as geopolitical risks linger
Gold price is trading below $2,400 in European trading on Friday, holding its retreat from a fresh five-day high of $2,418. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row, supported by lingering Middle East geopolitical risks.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.