The reason for this trade is the Weekly Weighted Average CAD and the Monthly Weighted Average YEN. Let's start with CAD
As it can be seen average weekly CAD in Jan tried to break the resistance to get at least to the EMAs (14 and 21). Could not do it. Here is the second attempt. Most likely it gets to the EMA if not breaking the resistance. Just see the price action for the last 3 candles. It explains the next move!
Here is INVERTED Weighted Average Monthly Yen.
I would see another leg higher as in Jan it bounced off the EMAs. Long-run it is likely to get to the upper band of the Monthly Wedge for Yen but before that it seems the EMA was successful particularly as we passing this crazy week.
Here is the confirmation. Gold and Sliver metal which are highly correlated with YEN are falling severely. Yesterday I made a call on Silver which dropped 9% since then as I picked the top. Main reason was Yen which was ready to drop.
Bottom line : If CAD rising and YEN falling in the longer TF then we should see this pair visiting the highs again. 100 the round number is very likely if not 110 !
Have a nice weekend.
KHAN
Here is INVERTED Weighted Average Monthly Yen.
Here is the confirmation. Gold and Sliver metal which are highly correlated with YEN are falling severely. Yesterday I made a call on Silver which dropped 9% since then as I picked the top. Main reason was Yen which was ready to drop.
Bottom line : If CAD rising and YEN falling in the longer TF then we should see this pair visiting the highs again. 100 the round number is very likely if not 110 !
Have a nice weekend.
KHAN
