Loonie traders are getting ready to trade Canada’s jobs data!
Think the release will affect CAD/JPY’s uptrend?
Before we talk setups, lemme show you the major headlines in the previous trading sessions:
- New Zealand’s manufacturing sector saw a slower rate of expansion in February
- NZ government flags property cooling measures as IMF warns of sharp correction risks
- Big Japan firms’ sentiment turns negative under 2nd virus emergency
- Asian stocks up as Biden signs stimulus; lower yields boost tech
- German inflation accelerates as expected
- UK GDP shrinks 2.9% amid COVID lockdown; Brexit cuts exports
- European markets pull back slightly as Treasury yields climb again
Upcoming Potential Catalysts on the Economic Calendar:
- Italy’s quarterly unemployment rate at 9:00 am GMT
- U.K.’s consumer inflation expectations at 9:30 am GMT
- Eurozone’s industrial production at 10:00 am GMT
- Canada’s labor market numbers at 1:30 pm GMT
- U.S. PPI reports at 1:30 pm GMT
What to Watch: CAD/JPY
CAD/JPY 1-hour Forex Chart
In a few hours, Canada will print its labor market numbers for the month of February.
My bro Forex Gump told me that markets are expecting a jump in net job additions and for the unemployment rate to slip a bit. If true, the report would support the Bank of Canada’s (BOC) optimism earlier this week.CAD/JPY is currently consolidating near its monthly highs just above the 86.50 minor psychological handle.
If Canada prints strong jobs data as markets are expecting, then CAD/JPY could extend its uptrend and even test the 88.00 levels that the pair hasn’t visited since 2018.
Disappointing jobs numbers, however, could inspire some profit-taking among the Loonie bulls.
The 86.20 zone that lines up with a previous high and a 50% Fib retracement would make for a good entry point if you think that CAD/JPY will eventually return to its uptrend.
