What a turnaround in the CAD / JPY mood
The pair seemed doomed to trading in Europe on Friday, but made a significant turnaround to avoid a daily break from the low of 85.42 on 21 April and 19 July, which ended at 85.57 last week; low hits 84.67 note.
The impressive turnaround this week is fueled by a sensitive turnaround as risky transactions gather in the midst of the fact that the curtains on this week’s major austerity announcement in Jackson Hole are almost closed.
Friday’s candlestick is a classic ascending pin and is confirmed today by pricing, as the breakdown of head and shoulders suddenly triples what you get for CAD / JPY day traders.
The pair has also just taken out their 100-hour moving average at 86.20, seeing near-term prejudices become more neutral instead. This at least emphasizes that buyers are very much at stake to turn a few things forward.
The 200-hour moving average is the next major challenge closer to 87.00.
The fact that the price of oil rises by 3% in a day, to $ 64, helps to strengthen Loonie’s feelings today.