CAD/JPY: Clear push above 107.65 to trigger rapid rally towards 112/114 – Scotiabank

CAD/JPY has traded positively through August so far. A clear break above 107.65 would trigger a significant rise towards 112/114, economists at Scotiabank report.

New cycle highs to reinvigorate broad bull tone

“The daily studies are leaning neutral still but new cycle highs here would certainly reinvigorate the broader bull tone of this cross which was obvious earlier this year.” 

“A clear and sustained push above 107.65 would suggest scope for additional – and relatively rapid, we believe – CAD gains towards 112/114.”

“Support is 105.15 (40-day moving average) and 102.95/00.”