CAD/JPY jumps up to 88.50-60 levels, its highest since October 2018
Higher yields and a strong loonie backed up by higher commodity prices and hawkish BOC makes for a potent combo as CAD/JPY breaks out to fresh highs for the year, and climbing to its highest levels since October 2018.
The highs at the time are seen around 89.17-22 and that will be the next key critical resistance point but in the big picture, there isn’t much to not like with the pair fundamentally.
As the global economy gets back on track and the Fed will eventually look to normalise, yields will eventually continue to tick higher. Adding to that is the commodities boom and the fact that the BOC is leading the central bank tightening race currently.
Unless the reflation trade falls apart, which I just don’t see how that would happen right now, any dips or correction in CAD/JPY is one to add to long positions.