TD Research likes short CAD/JPY exposure in spot targeting a move towards 84.00.
"We continue to like the tactical downside in CADJPY. For starters, the cross is 5% overvalued on our Global Macro PCA framework. That fits near the most extreme levels priced into this cross seen over the past decade," TD notes.
"Positioning is also extreme, trading at roughly 2- sigmas overbought," TD adds.