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CAD/JPY trades to its highest levels since early July
The pair has been an interesting one to take note of from a technical perspective since August trading and after holding at the lows in late September close to 85.00, buyers have produced quite a stunning bounce higher in recent weeks.
The latest shove in the past week sees price action push past the 100-day moving average (red line) and the August high @ 88.46. That has paved the way for further gains over the past few days with buyers edging past the 89.00 level today.
So, what’s next for the pair?
From a technical perspective, it is lining up for a solid rebound potentially back towards the late-May to early-June highs close to 91.00.
And with oil/commodity prices surging as well as a rather decent fundamental backdrop domestically, the loonie is keeping in good stead on the balance of things.
Adding to the tailwind for buyers in CAD/JPY is the surge higher in bond yields in recent weeks too. However, any further continuation of that will highly depend on today’s US jobs report for validation as we are seeing 10-year Treasury yields near 1.60%.
As such, if the fundamental factors align (especially the bond market), CAD/JPY is one to watch as it could perhaps look towards breaching the highs for the year.
It also isn’t the only yen pair that is looking for potentially more upside at this point.
Here’s a look at GBP/JPY and AUD/JPY, which are both contesting key technical resistance from its 100-day moving averages respectively at the moment:
