Yen Loses Steam As Concerns Fade
Getting short the CAD/JPY following a break of the 200-day SMA at 86.97 proved prudent as the pair would reach a low of 82.39. I would take profits at 83.00 after the psychological level held as support following a second test. We have seen yen crosses start to trade sideways as concerns over the European debt crisis have begun to fade. However, growth concerns remain real and weakening manufacturing data and today’s less than stellar Durable goods orders warns of a potential slowdown. However, I think we could see a short-ter retracement in the pair especially with the BoC expected to raise rates at their June 1st policy meeting. The 200-Day SMA may now become resistance and a move above 85.00 could inspire a cautious long position with the technical level as a target.
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