CADJPY is the biggest mover today

USD/JPY

USD/JPY is the currency pair comprising the United States dollar (symbol $, code USD) and the Japanese yen from Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed to buy one US dollar. For example, when USD/JPY is trading at 100.00, that means 1 US dollar equals 100 Japanese yen. The US dollar (USD) is the most traded currency in the world, while the Japanese yen is the third most traded currency in the world, which

USD/JPY is the currency pair comprising the United States dollar (symbol $, code USD) and the Japanese yen from Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed to buy one US dollar. For example, when USD/JPY is trading at 100.00, that means 1 US dollar equals 100 Japanese yen. The US dollar (USD) is the most traded currency in the world, while the Japanese yen is the third most traded currency in the world, which
Read this term the downward movement is supported by significantly lower rates. The two-year rate is now down -26 basis points to 3.870%. The 10-year yield is down -18.6 basis points to 3.396%.

This side of the cross pair is the biggest mover today.

The USDCAD, on the other hand, is up 0.07% (essentially unchanged). This currency is on the rise despite the sharp drop in US rates. For what? Crude Oil remains lower on the day and this tends to weaken the CAD (at times). Additionally, the PPI data out of Canada was lower than expected today, which is good news for CPI inflation going forward in Canada (CAD weaker) .

So, while most of the CADJPY’s decline can be attributed to the sharp decline in the USDJPY, the USDCAD is also relatively supported against other currencies.

What are the charts saying for CADJPY?

Looking at the CADJPY hourly chart above, today’s sharp decline retraces yesterday’s rise. Yesterday, the dynamic was exactly the opposite. Oil was higher and interest rates were also higher.

Technically, on the hourly chart above, yesterday’s price has moved back above the 100 hourly MA (blue line at 97.187 currently). At the start of the day, price continued to trade above and below this MA as market traders were torn apart (and the momentum of falling oil and rates failed to pan out). yet developed).

However, as price started to pull away from the 100 hourly MA (and fundamentals shifted), buyers turned more to sellers and the downside rout was underway.

This move eventually took the CADJPY price through Monday and Wednesday lows at 95.92 and 95.88. However, the low could not reach yesterday’s low price at 95.706. The price decline has slowed, but it remains just above these low areas.

Going forward, we would now need to break below 95.706 – 95.925 to increase the downside bias. If this were done, traders would look to the January 19th low price for the year at 94.62 (not shown). This level was also the lowest level dating back to March 2022.