CAD/JPY: If At First You Don’t Succeed

 | Feb 12, 2015 11:18AM ET

There are a variety of developments brewing across the world that have created some exciting moves in many asset classes as North America has opened for trade. From the downtrodden Australian employment report to the upbeat Bank of England Quarterly Inflation Report, markets are getting pulled in every direction. Commodities, and the currencies related to risk, are rallying, the USD is getting beaten down, the EUR is breathing a sigh of relief and equities are primarily in the green as well. Even Sweden is getting in on the action by taking a cue from most of the rest of Europe and saw their trend lines fleetingly broken .

Of course, that last hyperlink is in direct reference to a CAD/JPY article I posted yesterday that illustrated a rising trend that appeared to be pretty solid, but was thwarted nonetheless. However, after the dalliance below the trend line, the pair has returned to its previous perch thanks to some decent economic reports out of Canada this morning as well as oil breaking back above the $50 level.

If oil can maintain its strength as we approach the weekend, CAD may continue to be a venerable force against most other currencies and could even reestablish its trend in the CAD/JPY despite the momentary lapse. As the old saying goes, “If at first you don’t succeed, try, try, try again.”