Canada is gearing up to print its February jobs report while CAD/JPY is inching close to its range resistance.
Will sellers return soon?
Before moving on, ICYMI, yesterday’s watchlist checked out USD/JPY for its ascending triangle ahead of the U.S. CPI release. 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:
Global shares in the red on strong U.S. inflation and likely Fed tightening
Sources: Biden to call end of normal trade ties with Russia, tariffs to be increased
U.S. Senate approved $13.6B aid package for Ukraine
Iran says deal is within reach if U.S. acts realistically
EU says it will support Ukraine in “pursuing its European path”
Ukraine reports Russian attack on another nuclear facility
Canadian employment change at 1:30 pm GMT
U.S. UoM preliminary consumer sentiment at 3:00 PM GMT
U.S. President Biden to speak at 3:15 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
CAD/JPY 1-hour Forex Chart
If you’re looking to trade the news today, you gotta look at this CAD/JPY range ahead of the Canadian jobs release!
This pair has been pacing back and forth between support around the 89.85 mark and resistance at 91.75. Price is within striking distance of the range top, and technical indicators are hinting that it could hold.
For one, the 100 SMA is below the 200 SMA to signal that the path of least resistance is to the downside. Also, Stochastic has been reflecting overbought conditions for quite some time, so sellers could take over while buyers take a break.
If that happens, CAD/JPY could fall back to the range bottom or at least until the middle around 90.75. A break above the ceiling, on the other hand, could set off a climb that’s the same height as the rectangle or nearly 200 pips.
This might all boil down to the outcome of Canada’s jobs report, as analysts expect a rebound of 132K in hiring after the earlier 200.1K decline.
Don’t forget to keep tabs on risk sentiment and geopolitical tensions to see if crude oil is in for big moves, too!
