CADJPY on WatchPrice action in CADJPY is starting to looking interesting here to the short-side. The pair has been trending steadily higher this year. However, over the last month, we are starting to see signs that the pair might be topping out. Currently, the pair is at risk of putting in a double top (with lower top) formation, suggesting room for a break of the bull trend line and a deeper move lower. The key level to watch will be 102.17 support. Bears can trade a break of this level looking for 99.09 initially. Retail positioning is still heavily short but reducing so it will likely take a move through that support to confirm the shift in sentiment.Keep an Eye OnThe current drop in risk assets, particularly oi, is hitting CAD while driving JPY higher on better safe-haven demand. While the theme continues, we can expect CADJPY to continue lower near-term. Tonight’s FOMC minutes might well provide the catalyst for the next leg in this move is we see USD trading higher in response to the minutes.
Source: Tickmill
