CADJPY - Looking for Selling opportunities

29 May 2020

The Canadian Dollar (CXY) is worthless. I'm Canadian. I can tell you. It keeps depreciating against the entire world year after year. Now that the rant is done, and on a more serious note, CXY depreciates, that's the nature of things. I expect a weaker Dollar as fundamentals tend to point towards a slow and painful economic recovery in Canada following the Covid Pandemic. Furthermore, Trudeau administration keeps spending and spending and the Bank of Canada( BoC ) has a hard time coping with the issues it creates. Unemployment, Employment Insurance and General economic turmoil in the maple leaf nation is at the highest since the 1920's.
On a technical Analysis perspective, CADJPY entered a consolidation zone which is now approaching the top of said zone. Once we get a rejection of it (already done) and a failed retest (incoming), we can look at selling opportunities with great risk reward ratio.