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25 Feb 2015
CAD/JPY at 5-day high
FXStreet (Mumbai) - The CAD/JPY pair rose to a 5-day high of 95.75 on Wednesday as the markets believe the Bank of Canada would not cut interest rates next week.
CAD/JPY: rises above 23.6% Fibo level
The pair is trading above the 23.6% Fib retracement level of the down trend from 106.48 to 91.72 located at 95.20. The CAD strengthened after the BOC governor Poloz said yesterday that the bank would want to wait and see the effects of the previous rate cut announced in January. Markets read his statement as an indication that the bank would take a ‘pause’ next week, contrary to widespread expectation of an interest rate cut.
CAD/JPY Technical Levels
The pair has an immediate resistance at 95.77 (Feb. 10 high), above which gains could be extended to 96.38 (Feb 17 high). On the flip side, a break below 95.20 (23.65 Fib retracement), under which losses could be extended to 94.14.
CAD/JPY: rises above 23.6% Fibo level
The pair is trading above the 23.6% Fib retracement level of the down trend from 106.48 to 91.72 located at 95.20. The CAD strengthened after the BOC governor Poloz said yesterday that the bank would want to wait and see the effects of the previous rate cut announced in January. Markets read his statement as an indication that the bank would take a ‘pause’ next week, contrary to widespread expectation of an interest rate cut.
CAD/JPY Technical Levels
The pair has an immediate resistance at 95.77 (Feb. 10 high), above which gains could be extended to 96.38 (Feb 17 high). On the flip side, a break below 95.20 (23.65 Fib retracement), under which losses could be extended to 94.14.