Crude oil prices and the Canadian dollar diverge! CAD/JPY settlement or continuation ~Position talk~

◎ The Canadian Dollar So Far

Add CAD purchases! CAD/JPY Long position — Position Talk —

・Part of CAD/JPY has been partially taken profit at 85.00 yen.

※Reason for taking profit: broke out of the parallel channel, and could not fully break through the resistance line on the 4-hour chart.

CAD/JPY 1-hour chart

 CAD/JPY 4-hour chart

◎ From Here for the Canadian Dollar

Oil futures hover near 2019 highs, supported by OPEC-led production cuts

Recently the Canadian dollar has faced stronger resistance. After touching 85 yen and the GDP release showing poor results, subsequent data and crude oil prices have become less reactive.

WTI crude price and CAD/JPY・CAD/CHF comparison chart

Since the 12th, CAD has followed the rise in crude price, but yesterday the 18th rise saw the CAD fall.

When such a correlation breakdown persists, it is a time when sudden changes are likely.

CAD/JPY 1-hour chart

If it rises, it may break through the Fibonacci level as shown by the yellow arrows.

Conversely, if it breaks down as shown by the red arrows, the trend may reverse.

This Friday, CPI (Consumer Price Index) will be released. Until then, I think it will range between the red and yellow circles.

If the CPI result is poor, I think it will break downward with momentum.

If it looks like it will break the red circle, I am considering closing the Canadian positions at that timing.