Earlier today, May 1st, The Bank of Japan (BoJ) maintained its interest rates at 0.5%, with a dovish outlook, including trimmed growth and inflation forecasts.
This stance suggests a lower likelihood of near-term rate hikes, this priced in a weaker Yen and hence the Yen lagged across board.
The Canadian Dollar on the other hand being strengthened by the recent rebounds in oil prices took advantage of that, hence the surge in CADJPY.
TECHNICAL VIEW
From technical perspective, prices were supported at 104.35 after it broke out of a major psychological barrier level of 104. Price rallied to the strong supply zone of 105 and currently hovering around 105.06.
From technical lenses, the oscillators: RSI and Stochastic are over stretched hinting signs of possible pullback as they have gone above over bought levels and created bearish divergence: price is forming Higher High and both indicators are possibly forming Lower High simultaneously.
Other things being equal, analysts likely predict price to drop with potential target around 104.35 and if that is taken out, the next potential targets would be 104 and 103. On the other hand, if the bullish momentum is sustained, a break above 105.39 would usher in 106 psychological level. Breakouts of these levels are not ruled out as per analysts.
This stance suggests a lower likelihood of near-term rate hikes, this priced in a weaker Yen and hence the Yen lagged across board.
The Canadian Dollar on the other hand being strengthened by the recent rebounds in oil prices took advantage of that, hence the surge in CADJPY.
TECHNICAL VIEW
From technical perspective, prices were supported at 104.35 after it broke out of a major psychological barrier level of 104. Price rallied to the strong supply zone of 105 and currently hovering around 105.06.
From technical lenses, the oscillators: RSI and Stochastic are over stretched hinting signs of possible pullback as they have gone above over bought levels and created bearish divergence: price is forming Higher High and both indicators are possibly forming Lower High simultaneously.
Other things being equal, analysts likely predict price to drop with potential target around 104.35 and if that is taken out, the next potential targets would be 104 and 103. On the other hand, if the bullish momentum is sustained, a break above 105.39 would usher in 106 psychological level. Breakouts of these levels are not ruled out as per analysts.
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.