CAD/JPY gaining momentum amid BoJ dovish tone.

• BoJ dovish tone weakens the Yen.
• Poloz, Governor of Bank of Canada speaks next Tuesday at 14.30 GMT.

Mr. Kuroda from the Bank of Japan earlier on Friday said that the central bank “will patiently continue with current aggressive stimulus to achieve 2% price target”. He insited that the bank will make policy adjustments until they reach the 2% inflation target. The BoJ stressed it will persistently continue monetary easing. Kuroda said that the financial markets have been volatile but the economic fundamentals stay strong.  

On the Canadian side of the story, Poloz, the Governor of the Bank of Canada is slated to speak on Tuesday at 14.30 GMT. Market participants will closely be listening for any clue of a rate hike on April 12, which is the next rate announcement date. 

CAD/JPY daily chart

 
The next resistance is seen in the 84.00 region close to the 23.6% Fibonacci retracement, next scaling point is in the 85.00 region with the 38.2% Fibonacci retracement. Support is seen at 81.40 which is the cyclical low. Further down 80.00 should be the next support area. The RSI stayed almost a month in the oversold area and is now leaving it.