CAD/JPY Forecast Today 20/12: Surges As Yen Weakens (Video)


(MENAFN- Daily Forex)

  • The Canadian dollar has rocketed higher, almost two and a half percent against the Japanese yen as the Japanese yen itself is getting hammered by just about everything that is out there.
  • Keep in mind that the bank of Japan has come and gone and it's clear they aren't going to do anything to tighten monetary policy.
  • With that being said, it makes quite a bit of sense that we would continue to see the Canadian dollar rally against the Japanese yen.

Despite the fact that the Canadian dollar looks horrible. In this environment, I suspect that if we do pull back a bit, it will more likely than not offer a little bit of value that people will take advantage of near the 50 day EMA and the 108 Yen level. On the other hand, if we were to continue to go higher and break above the 111.50 Yen level, then I think that opens up the door for much bigger moves. I've got no interest whatsoever in shorting this pair, mainly because I don't want to buy the Yen. It's not that I like the Canadian dollar so much, it's just the Yen is that toxic.

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The size of the candlestick does tell you pretty much everything you need to know as far as directionality. Now as a trader, it's your job to find some type of value if we get it. Ultimately, I do think that we eventually break above the 111.50 yen level, and I think the US dollar against the Japanese yen will lead the way for most currency pairs that are denominated in yen. So, make sure that you are keeping an eye on that pair as well if you plan to jump into this one. After all, there is almost always some kind of correlation in the yen pairs.

EURUSD Chart by TradingView

Want to trade our daily forex analysis and predictions ? Here's a list of forex brokers in Japan to check out.

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