The strength meter this week highlighted the JPY as the strongest currency, could this offer opportunities for short ideas on CADJPY?
Watch the video to learn more…
The strength meter this week showed that the JPY was the strongest currency of last week. This was largely driven by the combination of factors such as the US GDP data and Bond Yields. This strengthened the Yen which currently had a positive correlation with the stock market which also rallied. The risk currencies suffered with CAD being one of those, also the price of Oil fell once again in line with our monthly outlook which would have helped drive CAD prices lower.
The daily chart shows the price driving to the downside aggressively. In these phases the market can form a bearish trend on the lower time frame. Looking at the 4hr time frame we can see that the price is forming lower lows and lower highs. If the price was to follow this path, we could look for a retest of the previous lows for short ideas, if the price was to form bearish price action.
Did you see our Week Ahead Analysis? You can see it here.
Enjoy low spreads and quick trade executions with a live account. Our highly committed customer support team will assist you from your quick account setup to any future concerns. Start trading with Blueberry Markets today.