CAD/JPY breaks to highest level since October 2018 as yen weighed down by higher yields

Technical Analysis

Author: Justin Low | cadjpy

CAD/JPY jumps up to 88.50-60 levels, its highest since October 2018

CAD/JPY D1 29-04
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 @ 89.17-22 and that will be the next key critical resistance point but in the big picture, there is much to 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.

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