Thoughts on CAD, specifically CAD/JPY - Watching the 109.50 area
Been keeping an eye on CAD/JPY. The pair has struggled to decisively break and hold above 109.50 on a few occasions now. It feels like a significant resistance zone, almost acting like a magnet pulling it back down after any attempts higher.
From a technical perspective, if we see a clear rejection from this level again, particularly with some conviction on the daily close, it could suggest a move back towards the 108.00-108.20 area. The risk to that scenario, of course, would be a strong, sustained break above 109.50, especially if accompanied by a daily close well above it. That would invalidate the current resistance thesis and likely open up room for further upside, perhaps towards 110.50. Just my observations for now.
I'm with you on that 109.50 level for CAD/JPY; it's definitely been a sticky point. Do you see any fundamental drivers aligning with that technical resistance, or is it purely a technical play for you right now?