Home Forex News USD/JPY Slumps To 2-Week Lows As USD/CAD Spikes To 1-Week Highs

USD/JPY Slumps To 2-Week Lows As USD/CAD Spikes To 1-Week Highs

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  • Japan Impressive PPI
  • Risk Aversion Spike
  • Canada Employment Data

The U.S dollar slumped against the Japanese Yen, Friday morning, with the USD/PY easing to two-week lows. The Canadian dollar, on the other hand, weakened across the board, resulting in the USD/CAD pair rising to one-week highs.

Yen Strengthens

The USD/JPY edged lower despite the U.S dollar strengthening against other major currencies. Amidst the sell-off, the pair remains subdued in a tight trading range between ¥107.6 and ¥107.5 level.

Time                            : 07-10-2020

Pivot                           : 107.16

Technical View           : Short Below 106.96

Target                         : 106.72 – 106.46

Comments                  : Bearish

Last Price                    : 106.76

The Yen strengthened across the board at the back of an impressive Producer Price index report that showed an increase of 0.6% in June against a 0.3% expected increase. The export price index, on the other hand, was up 0.4% from the previous month, with the Import price index rising 0.7%.

Even as the USD/JPY continued to edge higher, the U.S dollar continues to strengthen across the board as a spike in coronavirus cases in the U.S continues to rattle traders fuelling demand for safe-havens. Risk aversion is also up amid trade war tensions between China and the U.S over the Hong Kong security law.

CAD Weakness

The Canadian dollar, on the other hand, remains on the defensive against the dollar heading into the weekend. The CAD lost ground against the dollar as equity markets edged lower on Thursday amidst growing concerns about the second wave of coronavirus infections.

Time                            : 07-10-2020

Pivot                           : 1.3563

Technical View           : Long above 1.3583

Target                         : 1.3603 – 1.3651 – 1.3684 – 1.3757

Comments                  : Weak Bullish

Last Price                    : 1.3640

The CAD weakened despite the federal housing agency affirming improvements in the Canadian housing sector. The annual housing starts improved significantly to 211,681 units in June from 195,453 in May.

Friday promises to be a volatile session for the Canadian dollar as traders await the release of the Canadian Employment Change and the Unemployment rate for June. The reports are likely to sway trader’s sentiments on the CAD conversely the USD/CAD pair.

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