In the ever-changing global economic landscape, several key factors have recently come into play, causing ripples in financial markets. Two significant events have a record to show the attention of traders. The looming interest rate decisions surrounding popular USD securities and the surge in oil prices. This, as a result, is which is impacting the Canadian Dollar (CAD). 

These developments hold immense importance for traders, businesses, and governments as they navigate the uncertainties and opportunities presented by these interconnected market forces.

The CADJPY Performance 

New entry points can be considered for traders looking for an opportunity. The high at 106.600 has been broken with buyers coming in with momentum. A falling wedge can be seen on the H1 timeframe signalling a buyer’s signal. Having been broken yesterday, we anticipate the price action to continue to the upside. Take profit remains at price point 108.852.

The Brent Oil Performance

For the conservative trader, entry-level after both zones demarcated in blue as supply and demand as well as price point 80.77. As we had a discussion last week, we could reach the target early this week. Please note that the price has closed above the demand and supply zone indicated in the H4 timeframe.

The USDJPY Performance

We last saw a successful run to the upside on this pair hitting our target 1 around the 30 June. Since then, a retracement has been formed and completed. We are back to the top of the previous high with momentum but no follow-through yet. Support has been found at a price point of 138.020. 

For traders looking to take a position in this pair, please note that the blue zone has a mark as a supply and demand area that must be broken before entering. A momentum timeframe would be great, this will suggest a strong upside from the buyers. 

Traders should also be aware of the Interest rate decisions and monitor the price action closely to see how it reacts at price point 142.338. Target 2 at 148.682 is still in place once we overcome the hurdle at the supply and demand zone.

Read More: EURUSD Retracement Is Forming

Final Thoughts On Today’s Analysis 

The convergence of two significant market forces – interest rate decisions affecting USD securities and oil's surge impacting the CAD – has intensified volatility in the global financial landscape. 

It is crucial for market participants to keep a close eye on central banks monetary policy statements and their implications on USD-denominated securities. Likewise, tracking oil price movements and understanding their ramifications on the Canadian economy will be essential in making informed decisions and safeguarding financial interests in this dynamic economic environment. Watch our YouTube channel for more analysis.