CAD/JPY to extend its race higher towards the 99 zone – Scotiabank

CAD/JPY rally resumes. In the view of economists at Scotiabank, gains risk extending towards the 99 area.

Limited scope for corrections lower

“A weekly close above 94.41 (61.8% Fib of the 2015/2016 decline in the cross) targets additional gains to 99.05 (76.4% retracement).”

“Trend signals are bullish on the daily, weekly and monthly oscillators, suggesting limited scope for CAD corrections lower.”

“Minor dips (towards the low 94s) should be well-supported.”