CADJPY H1 AnalysisRisk appetite appears to have improved somewhat during the Asian session, and the Loonie(CAD) has been the strongest among the comdoll bunch.
This is likely because the commodity currency is drawing support from upbeat Canadian data and a pickup in crude oil as well. After all, there are speculations that the OPEC could be mulling an increase in output cuts or at least an extension of their agreement in order to prop prices up.
On the flip side, the safe-haven yen is losing ground to risk-on flows while also facing the possibility of a Q4 GDP contraction.
With that, I’m looking at this inverted head and shoulders breakout on CAD/JPY, especially since the pair appears to be making a retest of the broken neckline.
If you think that this reversal is about to gain traction from here, hopping in at market with a stop that’s enough to weather the pair’s average daily volatility could be a good play.
