CAD/JPY – Looking To Breach The 90 Handle
MAY 6, 2021
- Canadian dollar strengthened amid BoC’s QE tapering
- Canadian jobs report due for release on Friday at 2030 (SGT)
Chart 1: CAD/JPY D1 chart
Being the first central bank this year to taper quantitative easing, the Bank of Canada boosted the Canadian dollar after its announcement on the reduction of government bonds purchase by $1 billion weekly. The hawkish announcement led to CAD/JPY trading at the three-year high level, just slightly below the 90 handle.
For now, we can expect CAD/JPY to stay around this level but not for long as the Canadian jobs report will be released tomorrow at 2030 (SGT). The market is expecting a loss in jobs in April as well as a slight increase in the unemployment rate due to the four weeks lockdown in Ontario Canada. Nonetheless, if the jobs report released tomorrow does not reflect as bad as is expected, we may see a continuation in the strengthening of the Canadian dollar, potentially breaking above the 90 handle.
Trade Setup for CAD/JPY (D1)
Buy Stop Order at 90.300
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.