CAD/JPY breaks 85.00; threatens the August spike low

CAD/JPY down 118 pips to 84.92

At the peak of the delta-variant concerns, CAD/JPY was hit hard in a sharp drop to 84.64 from 88.00 over the course of several days.

It quickly recovered as sentiment turned and energy prices rallied but we're back in the doldrums again. I don't think this is about the Canadian election today but rather it's about broad risk sentiment and global growth fears. Oil is also flirting with $70, though that compares with $62 at the delta low.

The intensity of this fall speaks to the fears out there but it's looking a bit overdone in the short term. That said I certainly wouldn't be buying it here. There is a clear series of lower highs since June and we could see another day like today if 84.64 breaks.

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September 21, 2021 at 12:48AM
Adam Button
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