Today, we are seeing positive risk-appetite. US stock indices are up after a brief dip early in the US session. We are also seeing JPY weakness across the board, which is a sign of risk-on trading. Let’s take a look at the EUR/JPY, and GBP/JPY and CAD/JPY.
The EUR/JPY is staying in a consolidation channel today. The risk-on rally will allow us to see whether traders will challenge last week’s high. If traders instead put in a top below last week’s high, the EUR/JPY is likely to start a bearish continuation. GBP/JPY on the other hand looks ready to continue its bullish trend. The CAD/JPY is also in a bullish continuation scenario after today’s risk-on rally.
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