JPY trades broadly lower today as receding risk of US-China trade war lifted market sentiments. At the time of writing, Nikkei is up 0.46%, back above 23000. Hong Kong HSI is up 1.16%. NZD is the second weakest after poor retail sales data. GBP follows as the third weakest. On the other hand, USD, AUD and CAD are all firm.
CADJPY suffered steep post data selloff on Friday. But it’s now regained much ground. Technically, the pull back, while deep, was contained above 85.57 support as mentioned here. Therefore, outlook is still bullish. We’d maintain that the cross will target 61.8% projection of 80.52 to 85.75 from 83.88 at 87.11.
However, as 6H Action Bias has turned neutral for 4 bars already. It suggested that the cross is losing upside momentum. Hence, it’s time to get out of long in the next upswing, possibly a bit lower than 87.11 at 87.00.
