Japanese strength under construction with CAD Weakness looming?
Hi Traders,
I'm back with an interesting take on CAD/JPY.
This pair has surged 1% today, reaching the highs last seen on February 6th. From a fundamental perspective, the Bank of Japan (BOJ) is expected to announce a rate hike this week, with markets already pricing in two 25bps increases by the end of 2025—the first of which is expected imminently.
Trade Policy Developments:
Recent statements from the U.S. administration suggest plans to impose a 25% tariff on imports from **Canada and Mexico**. This could put pressure on the CAD, particularly against the JPY, as investors seek safe-haven assets.
Technical Outlook:
Looking at the charts, price is currently trading around a minor psychological level of 107.750, which is where I've entered for some swing shorts.
We also have a massive Head and Shoulders pattern forming, which, if confirmed, could drive prices lower. My attractive target for this setup is 100.000—a major barrier that could act as a strong support zone.
Risk Management:
The main risk in this trade is that we haven't fully broken the Head and Shoulders neckline yet, which could serve as a strong support. A fundamental catalyst might be needed to break this level.
For risk allocation, I’m allowing price to move up to 108.800 before cutting losses. Until then, I'll be monitoring price action closely.
As always my friends, manage your risk and trade smart. Stay safe out there!
Yours truly,
Tradebudz
I'm back with an interesting take on CAD/JPY.
This pair has surged 1% today, reaching the highs last seen on February 6th. From a fundamental perspective, the Bank of Japan (BOJ) is expected to announce a rate hike this week, with markets already pricing in two 25bps increases by the end of 2025—the first of which is expected imminently.
Trade Policy Developments:
Recent statements from the U.S. administration suggest plans to impose a 25% tariff on imports from **Canada and Mexico**. This could put pressure on the CAD, particularly against the JPY, as investors seek safe-haven assets.
Technical Outlook:
Looking at the charts, price is currently trading around a minor psychological level of 107.750, which is where I've entered for some swing shorts.
We also have a massive Head and Shoulders pattern forming, which, if confirmed, could drive prices lower. My attractive target for this setup is 100.000—a major barrier that could act as a strong support zone.
Risk Management:
The main risk in this trade is that we haven't fully broken the Head and Shoulders neckline yet, which could serve as a strong support. A fundamental catalyst might be needed to break this level.
For risk allocation, I’m allowing price to move up to 108.800 before cutting losses. Until then, I'll be monitoring price action closely.
As always my friends, manage your risk and trade smart. Stay safe out there!
Yours truly,
Tradebudz
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.