Good morning Traders!
Last Friday was Governor Kazuo Ueda first meeting as the head of the Bank of Japan, and many traders were looking for signs of when and how the BOJ is going to start pulling away from a decade long stimulus policy. However, the BOJ has decided to hold it’s rates, the yield curve control, and the stimulus unchanged, sending the Japanese Yen sharply lower against many of it’s trading partners.
CADJPY
CADJPY is back at it’s resistance level of around the 101.2 area. The sharp move on Friday has the market currently over extended from it’s Moving Averages on the Daily chart. On the Monthly chart, a break and a close above the this level could be seen as a continuation of the overall long term uptrend. I am looking for further compression of price underneath this strong resistance level, potentially on the lower timeframes, to allow for a potential tighter stop loss and for the Moving Averages to catch up with price action. The next potential strong Resistance level is in and around the 104 area.
Happy Trading!
