CADJPY Analysis : The War Between Safe-Haven and Commodity Currencies
Posted by Klejdi Cuni on
Over the past two weeks when was released the news that the attack in Ukraine began, we saw a shift of money directed to safe-haven currencies.
As you may know, the three main safe havens are considered USD, JPY, and CHF.
When we are in these situations USD, JPY and CHF tend to increase their price values change quickly.
However, this time everything developed in a different way. We can see a clear adaptation of the market to the relevant situation.
From February 24 22 to March 03 22 between the currencies in the CAD and JPY charts, the Canadian dollar showed that it was stronger. Very different from a normal situation.
As we all already know, the war between Russia and Ukraine will create problems with oil and natural gas reserves.
Canada, on the other hand, is a major oil producer, and the value of its currency is closely linked to the value of oil . These are also called commodity currencies.
So as long as the price of oil was projected to rise to $ 150 from many financial institutions like JP Morgan or the Bank of America, the Canadian dollar appreciated against one of the strongest safe-haven currencies, the Japanese Yen (JPY).
Also, the Japanese Yen (JPY) is showing its strength because not everyone thinks different way, so this is expanding the pattern formation to take the form of a "Bullish Flag Pattern" or a "Double Zigzag" "Elliott Wave."
As long as the price is still within the model, we can predict the next movement, which should be bullish again.
A price break decrease under the support area would increase the momentum of the decline.
As you may know, the three main safe havens are considered USD, JPY, and CHF.
When we are in these situations USD, JPY and CHF tend to increase their price values change quickly.
However, this time everything developed in a different way. We can see a clear adaptation of the market to the relevant situation.
From February 24 22 to March 03 22 between the currencies in the CAD and JPY charts, the Canadian dollar showed that it was stronger. Very different from a normal situation.
As we all already know, the war between Russia and Ukraine will create problems with oil and natural gas reserves.
Canada, on the other hand, is a major oil producer, and the value of its currency is closely linked to the value of oil . These are also called commodity currencies.
So as long as the price of oil was projected to rise to $ 150 from many financial institutions like JP Morgan or the Bank of America, the Canadian dollar appreciated against one of the strongest safe-haven currencies, the Japanese Yen (JPY).
Also, the Japanese Yen (JPY) is showing its strength because not everyone thinks different way, so this is expanding the pattern formation to take the form of a "Bullish Flag Pattern" or a "Double Zigzag" "Elliott Wave."
As long as the price is still within the model, we can predict the next movement, which should be bullish again.
A price break decrease under the support area would increase the momentum of the decline.