Seems likely CAD/JPY will continue higher in the weeks ahead, but could experience shorter-term pullbacks that might create potential entry points for long exposure.
Further, the 'Loonie' - as the Canadian Dollar is known - is affected by oil prices because of Canada's energy exports.
Oil prices currently:
The West Texas Intermediate Crude Oil market continues to go sideways more than anything else as there is no clear narrative as to where we are going next. With the concerns about the coronavirus dwindling the amount of demand for crude oil, it does make sense that we would struggle to go higher. Russia and Saudi Arabia want the production cuts to continue through 2021.
Looking at the 50 day and the 200 day EMA, you can see that they are both flat and simply sitting right about where the market is right now. No narrative as to where the direction will go despite production cuts because coronavirus cases continue to rise posing risk of secondary lockdown during winter season.
Further, the 'Loonie' - as the Canadian Dollar is known - is affected by oil prices because of Canada's energy exports.
Oil prices currently:
The West Texas Intermediate Crude Oil market continues to go sideways more than anything else as there is no clear narrative as to where we are going next. With the concerns about the coronavirus dwindling the amount of demand for crude oil, it does make sense that we would struggle to go higher. Russia and Saudi Arabia want the production cuts to continue through 2021.
Looking at the 50 day and the 200 day EMA, you can see that they are both flat and simply sitting right about where the market is right now. No narrative as to where the direction will go despite production cuts because coronavirus cases continue to rise posing risk of secondary lockdown during winter season.