The CAD/JPY pair looks very interesting from the technical side. The daily chart shows that the price perfectly respects the edges of the growth channel, in which the pair moves from the middle of March this year. The ongoing declines had led the price to the bottom edge. So there is a technical opportunity to initiate a upward rebound. Looking at the policy of the Central Banks, further growth would also be the preferred direction. Canada raises interest rates, while Japan conducts ultra loose monetary policy. The Bank of Japan will be held on Wednesday. If it does not come to any surprise, it is possible that Yen will weaken, which will open the way to initiate rebound, consistent with the technical system.
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