Canada is about to print its March jobs report, so we might see some big moves on CAD/JPY soon!
Which way will it break out?
Before moving on, ICYMI, yesterday’s watchlist checked out EUR/GBP’s support level test after the ECB minutes. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Russia suspended from UN Human Rights CouncilShanghai reports over 20K new COVID-19 infections
German Chancellor Scholtz says full transition period needed to ban Russian coal
RBA Financial Stability Review: Borrowers must prepare for rate increases
Japan says it plans to reduce imports of Russian coal gradually
Upcoming Potential Catalysts on the Forex Economic Calendar:
Canadian jobs report at 12:30 pm GMT
U.S. final wholesale inventories data at 2:00 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: CAD/JPY
This pair is consolidating inside a symmetrical triangle ahead of Canada’s jobs release, probably gearing up for a breakout soon.
Which way will it go?Price is hovering just above the triangle support around the 98.50 minor psychological level at the moment, and technical indicators are hinting that a bounce might follow.
The 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside while Stochastic is heading north to reflect bullish pressure.
In that case, CAD/JPY might still move back to the triangle top near the 99.00 major psychological mark. Stronger bullish momentum might even spur a break higher, followed by a rally that’s the same height as the triangle or around 300 pips.
It could all boil down to Canada’s latest jobs figures, as analysts are projecting a slowdown in hiring from 336.6K in the previous month to just 77.5K in March. Still, this might be enough to bring the jobless rate down to 5.4% and highlight the ongoing momentum in the labor market.
Weaker than expected results, however, could spur a bearish breakout and a selloff that’s as tall as the chart pattern.