CADJPY, Daily  

Canada employment surged 40.6k in March (median 12.5k) after the 2.3k dip in February. Full time employment jumped 35.3k in March after the 51.8k drop in February. Part time employment edged 5.3k higher in March on the heels of a 49.5k jump in February. By sector, growth was in the service sector where 74.7k jobs were created, led by a 24.9k rise in health care and social assistance and a 17.7k gain in accommodation and food after those sectors saw large job declines in February. Goods sector employment fell 34.1k in March, knocked lower by a 31.8k plunge in manufacturing, a 5.5k drop in construction and a relatively sedate 2.1k dip in natural resource jobs. The unemployment rate pulled back to 7.1% in March from 7.3% in February. The participation rate was 65.9 in March, matching the 65.9 in February. This is a mostly solid report overall, which is supportive of the expected constructive growth outlook from the BoC next week, although the tumble in manufacturing, and declines in construction and resource jobs will underpin a still cautious tone from the Bank.

The Canadian dollar is the biggest mover and shaker today, showing just over a 1% gain against the USD and just over a 1.5% advance on the JPY. The CAD’s gain has been fuelled by the strong Canadian employment report and strong rise in oil prices today, while the yen has ebbed amid an improvement in risk appetite and on the view that the recent surge in the currency raises the odds for the BoJ extending NIRP at its April 27th-28th meeting while shifting the MoF toward hitting the forex intervention button. The  CAD-JPY cross had lost 6.5% in just over a week, so was perhaps due a rebound.

Janne Muta

Chief Market Analyst

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Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

CADJPY, Daily

Last week I wrote how CADJPY had been falling as there weren’t bidders for the crude oil as problems with the Chinese stock market caused the traditional safe havens, such as Japanese Yen and Gold market to rally.  I said that the move is overdone on the downside was probably overdone and we should prepare to short at higher levels. The pair rallied to my 83.93 resistance and provided short trading opportunities for those who had been to my webinars and knew what to look for. My Target 1 at 82.46 was hit earlier today after which market created a bullish pin bar at the level. This suggests that the same target level was chosen by the institutional players as well.

CADJPY has now been falling for five consecutive days. With the market trading at support after such a continuous fall it wouldn’t be a surprise if it took a breather and moved sideways before extending its move to the downside towards my Target 2 at 81.38. This is supported by the 60 min chart in which price has reached a breakout target that was based on a triangle formation. Price should be moving sideways between the 82.46 support and the above triangle formation today.

Janne Muta

Chief Market Analyst

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

http://www.topforexbrokerscomparison.com

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

CADJPY, Daily

CADJPY has been falling over the last three days as there haven’t been bidders for the crude oil while problems with the Chinese stock market (limit down again today) have caused the traditional safe havens, such as Japanese Yen and Gold market to rally.

This sudden increase of volatility in the CADJPY pair opens up opportunities for both intraday and swing traders. Yesterday price fell below March 2012 pivotal support at 85 area and allowed the price to move to current levels of 83.20 where a small range (82.40 – 83.00) from November 2012 has been providing some support. In the daily picture the pair is trading below a 2 standard deviation regression channel which suggests that the move is overdone on the downside. Stochastics (7) and RSI (7) are deeply oversold as well. Nearest important support and resistance level are at 81.38 and 86.38 while the nearest Fibonacci retracement level (23.6%) that coincides with market pivots is at 87.32.

With the market being oversold in several meters and resting at this 82.40 – 83.00 range (from November 2012) a probability of market correcting higher has increased. Though, at the time of writing there is no indication in the lower time frame charts that price would in fact do that yet. We are however preparing for short trades at resistance levels in case such a rally would take place. Based on intraday charts there are two levels of interest for those looking to participate in the short side. The nearest one is at 83.93 while the next one is a zone reaching from 84.80 to 85.16. We look for short entry signals at these levels as per teachings in my webinars. Targets are 82.46 (T1) and 81.38 (T2).

Janne Muta

Chief Market Analyst

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

http://www.topforexbrokerscomparison.com

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.