CADJPY Chart Technical Outlook heads north with the next barrier at 107.80, CAD/JPY broad bias is bullish as the BoC can be more hawkish than the BoJ.
Technical indicators and retailers’ sentiment support the bullish side.
A break above 107.80 opens the door for 108.70 and then 109.50.
If 107.80 holds, the correction continues, and supports would be 106.35 and 104.80.
Since the pair correlates positively with stocks, it needs a risk-on sentiment to trend higher. The Chinese stimulus hopes pushes commodity currencies higher, with AUD and NZD on top of that, and to a lower extent CAD. Stock indices and DXY are at crossroads to resume trends or correct. I choose to be neutral regarding CAD/JPY at current levels.