The CAD/JPY 4 hour chart looks set to play out a bear flag, possibly taking the pair into new trend lows. The key components of this chart is the rejection (late December) of the 61.8% retracement level near 104.00. The pair has barely bounced as (both) risk and crude oil has bounced today. Should stocks and/or crude oil roll back over in the coming sessions we could take on levels below 100.00.

In addition, the White House is threatening to veto any bill on the Keystone Pipeline which should keep downside pressure on the already weak CAD currency.

Blake Morrow

Chief Currency Strategist, Wizetrade