The USD/CAD pair is moving sideways in the short term but the bias remains bullish. The upside pressure is strong as the Japanese Yen Futures remain bearish. It's located at 109.30 at the time of writing and it seems determined to hit new highs.
Fundamentally, the Japanese Flash Manufacturing PMI came in at 48.1 versus the 48.8 expected, while the National Core CPI reported only a 2.9% growth versus the 3.0% growth estimated, weakening the JPY.
On the other hand, Canada is to release the Retail Sales indicator which is expected to report a 0.0% growth, while Core Retail Sales may announce a 0.3% growth. Positive data could lift the currency pair.
USD/CAD Bullish Pattern!
Technically, the CAD/JPY pair was trapped between 108.88 and 109.27 levels. The range was seen as an upside continuation formation.
Now, it is challenging the 109.27 and the 61.8% (109.32) retracement level. The median line (ML) represents a dynamic resistance.
CAD/JPY Outlook!
A bullish closure above the 61.8% Fibonacci level (109.32) activates an upside continuation and an imminent breakout above the median line (ML). Jumping and stabilizing above the median line (ML) is seen as a buying opportunity.
