CAD/JPY bullish consolidation
As commodities resume their strong uptrend while US stocks which have a decent correlation to the CAD linger at their highs, CAD/JPY has also paused at its peak. After busting higher above the mid-May resistance at 90.74 last week, prices have traded in a tight range so far this week near those highs. The pair remains well supported and if it stays above the old breakout area which now acts as support, the cross should push up and get within reach of the 2017 and 2018 highs around 91.70. First support lies at the 21-day SMA at 90.05 and the range trading in the 90 area. If this fails, then major support sits at the April highs at 88.30.
Gold 4-hour chart encouraging
Let’s drop down a timeframe and look at gold which is in a bullish uptrend. The 50-period SMA at $1895 is doing a sterling job of supporting prices and this tracks the upward trendline from 5 May. Below here is Friday and Monday’s resistance/now support zone around $1890. With the bulls in charge, a challenge of yesterday’s highs at $1916 looks on the cards with gold bugs pushing towards the year highs if bullish momentum continues helping prices move north. Stops can be placed below the trendline and support below $1890.