CAD/JPY could test 99.70 today – FXStreet

FXStreet (Barcelona) - FXStreet Editor and Analyst, Dhwani Mehta, believes that CAD/JPY sees potential for a test of 99.70 levels, with JPY trading weak after the soft Japanese CPI release.

Key Quotes

“CAD/JPY prolongs its winning streak during the European session, reversing a brief dip seen on Thursday, largely on the back of broad yen weakness after the latest downbeat Japanese CPI data. While, the CAD kept mild losses versus the US dollar, albeit supported by upbeat Canadian GDP numbers released yesterday.”

“The US dollar index, which measures the relative performance of the greenback against six major currencies, was trading subdued at 94.77, recording a -0.11% loss on the day."

“Technically, on daily chart, the CAD/JPY pair is seen trading higher, well supported above 5-DMA located at 98.84 levels.”

“The pair seems to face stiff resistance around 99.20-99.25, having failed several attempts to surpass that band.”

“The daily RSI at 68.74, inching near overbought territory, aims higher indicating further case for upside.”

“With most technical indicators and moving averages as well reflecting a strong buying opportunity, we anticipate that the CAD/JPY cross could rise to 99.70 levels in the session ahead.”

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