Nick Nasad
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CAD/JPY: Topside Breakout in Short Term, Possible Correction in Daily

The CAD/JPY looks like it may have a nice lil breakout here in the 1-hour timeframe as the pair managed to build a bottom over the last 2 sessions.

This pair has been in a free-fall during January (as the macro data suggests the BOC may be thinking about lowering rates in the near term) but I must think that market participants have considered this latest decline a bit overdone.

Zooming out to the daily timeframe, we see the steep fall from the 99 level and the potential for even a small retracement could net some decent pips.

What's encouraging is the support that the 200-daily EMA provided. A quick target to the upside could be around 96.30, which would be the 55-daily EMA as well as a previous pivot that acted as support before it was cracked in Friday's session.