Yen weakness continues
CAD/JPY is an interesting chart today with the yen lagging today and the loonie trailing only CHF.
The pair looked like it might break lower in late July but that has quickly reversed and it rose to the highest since June 10 today, breaking the 200-day moving average in the process.
The loonie is benefiting from better risk sentiment and higher commodity prices. To keep the rally going, that will need to continue. The concern is that equities have already run too far. The S&P 500 is up in 7 of the past 8 days including a healthy 1.2% climb today.
However the 200-dma and the July high now lend some decent support and an opportunity to manage risk.
