By eFXdata — May 03 - 09:30 AM
TD Research likes tactical short CADJPY exposure around current levels (spot ref: @88.97), targeting a move to 84.00 with a stop-loss trigger of 91.85.
"While the BoC remains one of the most hawkish central banks in the G10, our dashboard shows that there's too much optimism priced into CAD now,' TD notes.
"CADJPY is running at a 6% premium based on our Global Macro PCA, while positioning has reached extreme overbought levels," TD adds.
TD Bank Research/Market Commentary