CAD/JPY: More losses likely ahead – Scotiabank

CAD/JPY gains have stalled following the break above 109.50 resistance. Economists at Scotiabank analyze the pair’s outlook.

Near-term losses may extend to the upper 106s 

Weekly price action formed a bearish ‘gravestone’ doji last week – which largely does what it says on the tin in terms of implications.

Net CAD losses through trend support so far this week add to the negative tone of short-term price trends.

Near-term losses may extend to the upper 106s to retest the ceiling of the channel that held price action through Q3. 

Resistance is 109.00 and (strong) at 111.15 (last week’s high).