"CADJPY continues to pressure major support in the low 94 area. Despite failing to hold last Friday’s channel break, we still rather favour the downside for the CADJPY. The short-term trend lower from the early July high at 96.22 is well-defined and relatively well-entrenched on the short-term charts. Intraday…Continue
The double top at 1.3965 (and the break under the neckline trigger) targets a drop back to the upper 1.33s—our long-held target for a downside extension. Trend momentum is negative on the shorter-term (6-hour and daily) studies. Even with spot reversing from the intraday low and closing…Continue
We expect that the JPY is still on course for softening vs. the USD over the medium-term as the progression of Fed tapering highlights the extremely accommodative position of the BoJ. However, near-term the readjustment in expectations regarding the outlook for the AUD, NZD and the EUR could be providing additional support for the yen. Layered on top of the prevailing geopolitical risks and the adjustments…Continue
"We think the broader, downward correction in USDCAD has run its course; technical factors are turning bullish after the rebound from 1.0600/50 and the fundamental data flow is likely to remain challenging for the CAD. Market positioning is neutral and there is no incentive for investors to get long CAD, in our opinion. We think there is a risk that Canada's June CPI data disappoints to the downside, which should help push USDCAD to, and perhaps through,1.08."