As nuclear comes into play, CADJPY tumbles further.
“Japanese yen in demand after Putin suggested the usage of nuclear weapon against Ukraine.”
Risk aversion dominates the market, buoyed by bold claims from the Russian counterpart. According to reports, Russian President Vladimir Putin commented that Ukraine war may prolong due to current circumstances in the region. However, Putin warned that the usage of nuclear weapons has increased for the means of defence, rather than provocation. Such signal has increased the demand for safe-haven especially Japanese Yen.
Quick recap on CADJPY
The pair experienced substantial bearish momentum after forming a double top formation.
CADJPY Weekly Technical Analysis
From weekly perspective, the pair strongly skewed towards the downside, apparent from MACD’s momentum.
CADJPY Daily Technical Analysis
From daily perspective, while recent rebound suggests possibility for a short-term recovery, long-term signals from higher timeframe suggests otherwise.
Trading Idea
ORDER: SELL STOP
ENTRY: 99.00
STOP LOSS: 100.00
Target 1: 98.00
Target 2: 97.20
ZFX Analyst’s Comment
From overall perspective, while the pair shows significant bearish tendency, we will require a break below its closest support level before entering the market.
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