CAD/JPY is currently residing in a corrective volatile structure at the edge of breaking above the resistance level of 86.70. JPY has been quite weak against CAD which is currently came to a stop due to indecision in the market now. Yesterday JPY Policy Rate was published with an unchanged figure at -0.10% as per expectation, Trade Balance report showed a decrease to 0.08T which was expected to be unchanged at 0.12T and All Industrial Activity report showed negative figure at -0.9% which previously was at 2.3%. The unchanged policy rate report could not quite provide any positive impact on JPY against CAD yesterday which resulted in indecision and correction yesterday. Today a good amount of CAD economic events are going to be held including CPI report which is expected to be negative at -0.1% which previously was positive at 0.1%, Core Retail Sales is expected to show a decrease to 0.0% from the previous value of 1.5%, Common CPI is expected to be hawkish which previously was at 1.3%, Median CPI is expected to be hawkish which previously was at 1.5%, Retail Sales is expected to decrease to 0.3% which previously was at 0.8%, Trimmed CPI is expected to be hawkish which previously was at 1.2% and Core CPI is expected to be hawkish as well which previously was at 0.1%. To sum up, a good amount of economic event of CAD is going to be held today which is expected to bring in a good amount of volatility in the market and resulting to further gains on the CAD side. CAD has been quite hawkish in nature recently after the Interest Rate hike which is expected to continue further in the coming days.
Now let us look at the technical view, the price is currently at the edge of breaking above the resistance level of 86.70. The price has been correcting at this level since last 5 days and a breakout is expected to result today due to high impact CAD economic reports going to be published today. If we see a daily close above the 86.70 today then we will be looking forward to buying with a target towards 90.00 and if the price breaks below 86.70 with a daily close then we will be looking forward to selling with a target towards 87.50 which is the support of dynamic level 20 EMA.
