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CAD/JPY: Short Review and Forecast

Published on: 22/02/2017

The weak downtrend which was formed only 2 months ago is continuing and despite the rather high volatility, it is losing intensity and seems to be changing toward a flat trend.

CAD/JPY, H4 chart
The Japanese yen unexpectedly strengthened against the Canadian dollar despite disappointing data on the trade balance of Japan, the increase in imports due to the increasing of oil prices and a reduced volume of exports for the first time in a long period. Probably investors are trying to diversify risks and choosing the yen for this together with the traditional option - GOLD.

On the other hand, this hasn't changed the situation for the CAD. In any case, there are preconditions that it will happen in the near future. Canada at the moment is focused on the relations with the USA and Trump's plans to reconsider the trade relations under the North American Free Trade Agreement (NAFTA). Also, today we expect reports on the trading volumes in Canada that can help the Canadian dollar to strengthen.
The  Stochastics and MACD oscillators are unanimous: the best solution in this situation is to open the deals to BUY.

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