CADJPY Heading HigherAs with my EURJPY long, the recent CADJPY breakout idea has now hit its target at 105.33 following the breakout above 102.17. JPY weakness has been a prevailing market theme over recent weeks and both CAD and EUR have been well positioned to take advantage of this dynamic. With the BOC hiking rates by a further .5% last week, and signalling further hikes to come, CADJPY looks likely to continue higher near term. Indeed, the retail market is overwhelmingly short the pair, suggesting room for continued upside. With this in mind, bulls can look to hold longs through 106.57 while the breakout region holds, anticipating a larger move to come.Keep an Eye OnCanadian employment data at the top of the week will be the main data driver. With hawkish BOC expectations well entrenched, any data to reinforce that narrative will keep the pair pressured higher near term. Keep an eye on risk flows over the week also with JPY weakness likely to develop further if equities can continue higher.
Source: Tickmill
