Good evening team,
The BoC has become the first central bank to begin tapering bond purchases, essentially starting the process of withdrawing monetary support from the financial markets due to positive economic data. The central bank also stated that the market would recover a lot quicker than what many analysts had previously forecast. With this in mind the CAD provides a fundamentally bullish outlook due to supply and demand. If the central bank begins to cut supply whilst demand remains the same the currency should strengthen.
CADJPY – 4 Hour Charts
Trade Setup : BUY market execution, current price 86.55, stop loss 86.00 and take profit 87.55
Stop loss: 55 pips
Take profit: 100 pips