Take a look at the CAD / JPY weekly chart
Yesterday, it seemed that CAD / JPY could move towards the ugly weekly pattern of the chart, falling just over the June lows in the worst week of the year.
Today, however, the pair has risen 80 points back to the last range to limit damage and leave a more nuanced technical picture.
Short-term prejudices are still lower, but the zooms remind us that the pair was the best performer in H1 and it stood at 91.00, which is a little ahead of the old double-tale of 2017.
What’s more, looking back at the beginning of the year, there was a similar decline between the weeks through 86.00, which seemed like the beginning of a deeper setback, but was followed by a rip higher.
In general, there is a consolidation around these levels when we reflect reflection transactions. When we finally see an increase in demand and delta variant growth is not robbed, this couple is a great place.
Today’s cut in the RRR from China is a good sign for commodities and currencies. The next hurdle for the couple is Wednesday’s Bank of Canada decision. I have a feeling that Macklem is not afraid to narrow down.