CAD/JPY – The Canadian Dollar just broke out and touched the 50 moving average on the daily chart. This happened around the release of Canada Labour Force’s report. The report shows that employment rose by 48,000 during the month of January 2017, while the unemployment rate has decreased by only 0.1%.
First major resistance for the pair is around the 87.515 level. Stochastic is also showing a bullish cross. Profit taking is to be expected soon as traders don’t want to hold through the US and Japanese meeting.
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There are three high impact news events for the CAD this week:
Feb 7 (Tuesday) – The focus on Tuesday will be the Trade Balance report. Traders are forecasting 1.2 Billion surplus compared to the previous Trade Balance report of 500 million surplus.
Feb 10 (Friday) – Two key reports this Friday for the CAD: Employment Change and Unemployment Rate. Previous Employment Change numbers is 53.7k. Previous Unemployment Rate numbers is 6.9%.