(MENAFN- Daily Forex)

• The US dollar rallied just a bit during the course of the trading session on Thursday as we are seeing a little lack of liquidity late in the day as it is Thanksgiving in the United States.
• I think you've got a situation that the market is simply just a bit oversold we've seen the Japanese yen give up some of its gains in multiple pairs right now including against the Canadian dollar.

The 107.50 yen level is an area that I think a lot of people will be paying close attention to. Although I don't think it's a massive support level, I do think it's one that has a little bit of history. If we can break higher from here and clear the 50 day EMA near the 109.50 yen level, then it opens up a move to the 111.50 yen level.

This CAD/JPY pair will more likely than not end up being a situation where it's probably going to be more about the yen than anything else. Pay attention to how the Japanese yen is behaving against multiple other currencies, and you'll probably get the direction of this pair correct. If we were to break down below the 107 point volume zero yen level, then it's possible that we could see a steeper decline, perhaps all the way down to 104 yen.

If This Happens, the Yen Will Be The Cause

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That would accompany other yen related pairs falling. It wouldn't just be this one. So again, I think this is more about the Japanese yen than it is the Canadian dollar. Although we do have Canadian GDP coming out on Friday that could change things. But recently all yen related pairs have all moved in the same manner and in the same type of momentum. And I think that continues to be the case going into the future.

EURUSD Chart by TradingView

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