What happened? Japanese shares fell on Monday…
CAD/JPY reversed from resistance zone
2019-11-11 • Updated
- CAD/JPY reversed from resistance zone
- Next sell target - 87.40
CAD/JPY recently reversed down strongly from the resistance zone surrounding the key resistance level 89.00 (which stopped the previous intermediate wave (A) in last December, as can be seen from the daily CAD/JPY chart below). This resistance zone was further strengthened by the upper daily Bollinger Band. The downward reversal from this resistance zone started the active minor correction (iv). CAD/JPY is expected to fall to the next sell target at the next support level 87.40.
USDCAD began the week slightly higher reaching as high as 1.2510 but failed to sustain these gains.
All eyes are headed toward the Bank of Canada today. Estimates point to no change both for the main rate and the ongoing QE which stands at $3B weekly.
The past several weeks have been a real triumph for the bulls in the oil market. The Brent spot price grew by 8.5% during the last month.
Gold prices are rising for three consecutive days ahead of the Federal Reserve (Fed) interest rate decision, which is expected to remain unchanged due to declining inflation and a positive economic outlook. Investors are keen on the Fed's interest rate guidance, fearing a hawkish stance that could trigger market risk aversion.
Amid concerns of a Chinese economic slowdown, reports of declining investment often overlook China's efficient investment strategy in emerging sectors for long-term growth. China has taken measures to stabilize foreign and private sector investments, like reducing the reserve requirement ratio to boost investor confidence.