EUR/JPY rebounded from the 123.00 level on the H4. The pair formed a “piercing line” pattern.
CAD/JPY is under attack
Information is not investment advice
CAD/JPY failed to close last week around the high of 85.20 and, as a result, remained capped by the 50-week MA in the 84.53 area.
On Monday, the pair closed away from the daily lows but still below the 100-day MA at 84.00 and February support line. The weekly pivot point is located at 84.33, so bears will prevail as long as the pair’s trading below this level. Given all mentioned above, we think that there’s a sense to bet on the decline of the Canadian dollar versus the Japanese yen. The proposed entry level is near the 50-period MA on H4 (84.13)
Bear in mind that volatility will rise on Wednesday, as Canada releases the trade balance figures and the Bank of Canada holds its meeting.
NZD/CAD has reached a 200-week MA (0.8950) and formed a “shooting star” candlestick on the D1. On the H4, we see a lower high.
XAU/USD has moved this week in line with its short-term uptrend and the overall long-term uptrend reaching $1 865.
The number of Americans applying for initial unemployment benefits came in at a larger-than-forecast 870,000 last week, signaling that the recovery in the labor market is losing momentum as the coronavirus pandemic lingers and layoffs continue apace.
The GBP is likely to move upward until it reaches the resistance of 1.2795.
The aussie is expected to plummet for the next six months. What is the reason?