Follow up with USDCAD, this pair sold off as expected with higher volatility in the New York session. USDJPY continues to sell off on Bank of Japan optimistic GDP growth forecasts.
USDCAD sold off sharply after hitting the upper boundary of the January 25th supply zone. Later this afternoon, this pair retracted slightly, but is expected to continue trending lower with no expected upside at the moment. However, this Friday’s Non-Farm Payroll may capture stronger holiday employment figures.
Yen pairs made a temporary leg up as Bank of Japan raised its economic growth forecasts. For the 2017/18 year over year change, both Core CPI and GDP is expected to increase by 1.5%. For 2018/19 year over year change, Core CPI is expected to increase by 1.7% and GDP by 1.1%. Additionally, the Bank of Japan reach decision to kept monetary policy steady.