CADJPY Rally Continues

The CADJPY breakout trade continues to deliver here, with price blowing through another target at 90.69 and clearing the previous 2021 highs. The crude market rally has acted as a platform for firm CAD upside here. Rising BOC tightening expectations are turning the outlook decidedly bullish here. At the same time, the lack of safe haven demand for JPY, as well as the BOJ’s commitment to maintaining easing, is keeping JPY pressured. With this dynamic likely to continue in the near term, CADJPY has plenty of room to continue higher.

Technical Views

CADJPY

The rally in CADJPY has seen price exploding through the 90.69 second target and above the 91.60 level. While above here, and with both MACD and RSI firmly bullish, the focus is on further upside in the near term. 92.74 is the next upside hurdle for bulls. Given the velocity of the move, some near term correction is to be expected, though 91.60 – 90.29 should hold as a base of support acting as a platform for a continuation higher.