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Technical view: CAD/JPY’s rally is lagging…are we seeing a reversal?
Outside of the US dollar, the Canadian dollar has been the strongest major currency year-to-date, with the loonie benefitting from aggressive interest rate increases by the Bank of Canada and strength in the price of oil, Canada’s most important export. On the other side of the coin, the Japanese yen has been by far the weakest of the major currencies so far in 2022 as the BOJ stubbornly protects the yield cap on JGBs in an effort to stimulate inflation in the moribund island economy. These fundamental trends show no imminent signs of reversing, but CAD/JPY’s chart nonetheless suggests that there may be an ... (full story)