Nice moves in all the yen crosses today
It's a classic risk-on day today with yields, stocks, commodities and yen crosses all moving higher.
We've seen a few of these lately but the next day has often been a disjointed version, or the opposite or some other kind of mess of correlations. I like the higher-yields, higher risk trade in general and think it works on reflation so long as it doesn't happen too fast.
Technically, CAD/JPY continues to be a good barometer of everything. It was the top performing FX trade in H1 and then was a volatile mess in Q3. It looks to have steadied now and is at the highest since early July.
The chart looks like an inverted head-and-shoulder with a target of 92.00.
