CADJPY Daily Outlook – The Fed just announced it will drop interest rates to zero and buy at least $700 billion in government and mortgage-related bonds as part of a wide-ranging emergency action to protect the economy from the impact of the coronavirus outbreak.
While this normally would be huge, early on Monday the US markets actually dropped, which shows Wall Street may calling this a bluff.
On Tuesday, we will continue watching as the Coronavirus and the oil price waw continue to develop.
This week we’ll be eyeing the AUD, GBP, EUR, and CAD to see if they can recover from last week’s heavy losses versus the USD.
Today I’m looking at the CAD/JPY pair on the monthly chart as it found support at the three-year low of 74.85 last week…
Looking at the big picture, the pair dropped to as low as 68.54 during the 2008 market crash…
But back then the pair had just experienced an all-time-high at around 124; a level that has not been seen ever since.
Does this mean that the Coronavirus crash could drag the pair lower eventually?
From what we’ve seen so far, the possibility of the pair revisiting at least 68.52 is pretty high.
What do you think? Will you be shorting the CAD/JPY pair, or will you buy in the current pullback?
Head over to the comments section and let me know!
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