Forex Flash: Turned neutral on CAD/JPY – TDS

FXstreet.com (Barcelona) - Right at fresh year to date highs, and highest since May 2011, CADJPY trades at 85.26 last, off yesterday's highs at 85.55, with TD Securities Toronto based FX Research Team pointing out that: "We turned neutral on CADJPY last week as the cross struggled to better the 85 area. This was our near-term bull objective following CADJPY's break higher from the JPY 78.90/81.45 range and represents the March high for the cross," the team says.

The analyst expand: "Choppy price action in the past couple of sessions suggests to us that there is some risk of a short-term correction but, if we do see a dip, it should remain shallow. We expect strong support through to the low 83 area but weakness may not extend much below 84 at the moment."

"We think 88/89 is reachable in the next few weeks and we think buying dips in the CAD from here is the correct strategy," the team concludes.