CADJPY is on a short-term online currency trading uptrend, as a rising trend line can be drawn to connect price lows since August on its 1-hour forex chart. Price is currently testing this ascending support zone and may be due for another bounce to its previous highs or beyond.
At the same time, stochastic is indicating a pickup in online currency trading buying pressure, which might be enough for CADJPY to sustain its climb. A bullish divergence is playing out, after stochastic made lower lows while price made higher lows, further adding confirmation that bulls are in control of online currency trading price movements for now.
Further gains could take CADJPY up to the 97.70 level or its previous highs while a stronger bull run could push it past the 98.00 major psychological level. On the other hand, a break below the rising trend line could be an early reversal signal and the start of a short-term downtrend for the pair.
Online Currency Trading Forecasts
Data from Japan has been mostly weaker than expected recently, prompting speculations of additional easing from the BOJ. Household spending, industrial production, and tertiary industry activity data have been disappointing and have failed to recover after the April sales tax hike.
For now though, the BOJ remains adamant that there is no need to ease yet and that the Japanese economy could stay resilient. However, BOJ Governor Kuroda has also mentioned that a potential downturn in inflation could push the central bank to ramp up stimulus. Analysts predict that the BOJ might sit on its hands for the rest of this year before contemplating easing next year, which might lead to online currency trading weakness for the Japanese yen.
Meanwhile, data from Canada has also been far from impressive, with employment figures coming in way below estimates for August. However, the Canadian economy could draw support from the US, with dollar gains likely to translate to a few online currency trading rallies for the Canadian dollar as well.
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