By Forex Signs, Inc.
Readings of the CADJPY currency pair chart on an H1 time frame shows the pair currently consolidating with low volatility inside the 83.55 resistance line and 83.41 support line as of the last 10 candle sticks. Consolidation began as the pair hit the resistance while moving in a volatile downward channel. Moving Averages suggest that the pair will continue in a bearish trend as the price is moving below the Exponential Moving Average (14) of 83.50 while the pair’s Simple Moving Average (14) also is virtually identical at 83.49. The Ichimoku Kinko Hyo (9, 26, 52) is also suggesting that the 83.41 support line may be broken as the indicator’s tenkan-sen is moving below the kijun-sen with no signs of any cross over. It is also to be noted that both the tenkan and kijun are found inside the kumo which suggests a neutral selling signal.
RBA’s Secured Facility for Banks
As of today’s Asian session, with the Australian central bank planning to offer contingency loan to its banks, global liquidity is expected to remain at ease, thus marking a stronger Australian dollar compared to Yen in the upcoming session. As it provides secured facilities that could likely cover any gaps between lenders’ liquid assets and global regulator’s requirements.
On the contrary, since this is a secured facility of the RBA, Australia’s larger banks is expected to present reasonable steps. Provided that they really had tried their best to meet the Basel’s requirements by their own balance sheet management, before relying on the RBA facility.
However, the RBA is expected to first work on the fee before presenting the facility. For banks may have to choose to increase the size of their secured facility if it is too low, or may raise lending rates to regain the costs if the fee is too high.
So far, Australian is likely to be on a bullish trend against the Yen, but may still be driven in volatility in the upcoming session.
About the Author
Forex Signs, Inc., Founded in 2006 in Wall Street, New York City, FSI relentlessly strives to be the premier Forex brokerage company in the industry by providing exclusive and unmatched trading and investment related services while constantly developing innovative solutions that cater to the vast requirements of both individual and institutional market participants.
