In an unstable global economy, it is still possible to find fairly stable processes that allow investors to continue to earn from exchange rates. We are talking about the CAD/JPY quotes at the moment and about the confrontation of commodity assets against safe ones. The uptrend continues for the 11th month in a row, and we can still see the testing of the resistance line and the intensifying of the trend. Investors are still optimistic about the future of the global economy.
This week, the trend has not changed. Commodity assets continue rising in price - in particular, oil, which has long been fixed in the 60+ range and supports the CAD. External factors remain the driver for the CAD in the absence of important macroeconomic reports. The situation is similar for the JPY, although with the release of macroeconomic reports in Japan, the yen mostly retreats even more, since inflation processes and economic indicators are still far from the levels desired by the Bank of Japan.
Next week may be more volatile for the CAD/JPY pair. China's business activity indexes, Japan's unemployment data, Canada's GDP in Q4 and the trade balance will be published. The most important reports for the first five days of March make next week very interesting. As for today, we are confident in the continuation of the trend and the effectiveness of the deals to BUY. Technical analysis tools also indicate the same.
