27 Jun 2014
CAD/JPY upside seems compelling - SocGen
FXStreet (Bali) - The FX Strategy Team at Societe Generale recommends going long CAD/JPY, with a stop on a close below 94.30 and take-profit at 96.50.
Key Quotes
"The biggest mover over the past week is CAD, and that was initially on the back of the FOMC that drove the USD/CAD pair lower, then followed on Friday by the upside surprise in the Canadian May CPI inflation readings."
"The break in CAD/JPY to the upside is very apparent. Go long at the current spot rate, with a stop on a close below 94.30 (the 200-day MA) and take-profit at 96.50."
"Do note that we would not recommend long CAD as a medium-term trade, given that the Bank of Canada is set on maintaining a dovish policy bias, but the near-term potential for CAD upside seems compelling."
Key Quotes
"The biggest mover over the past week is CAD, and that was initially on the back of the FOMC that drove the USD/CAD pair lower, then followed on Friday by the upside surprise in the Canadian May CPI inflation readings."
"The break in CAD/JPY to the upside is very apparent. Go long at the current spot rate, with a stop on a close below 94.30 (the 200-day MA) and take-profit at 96.50."
"Do note that we would not recommend long CAD as a medium-term trade, given that the Bank of Canada is set on maintaining a dovish policy bias, but the near-term potential for CAD upside seems compelling."