The pair trades in the sharp ascent started in early September. It reached an intraday high of 88.9 in the Asian session. However, will CADJPY continue upward trend? What does today’s analysis show?
1 October, OctaFX – The Japanese Yen declined in the Asian session after mixed economic numbers from Japan. The Tankan all big industry CAPEX for the third quarter rose by 13.4% which was lower than the expected 14.2%.
The Tankan Larger Manufacturers Index for the third quarter rose by 19, which was lower than the expected 22 while the non-manufacturer’s index fell to 22. This data is a clear indication of the challenges the Japanese economy is facing in the midst of a global trade war.
Will CADJPY Continue Upward Momemtum?
The CADJPY pair continued the sharp ascent started in early September. It reached an intraday high of 88.9 in the Asian session as traders cheered the US-Canada deal. The pair is trading along the upper Bollinger Band which is an important show of strength.
The RSI is above the 70 overbought level while the momentum indicator is above 100. While a slight downward movement is likely in the short-term, the pair will most likely continue the upward momentum.
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