This week should be important for the CAD. We have an interest rate decision and statement, as well as CPI and retail sales data. Ahead of those events, CAD is very strong. USDCAD has been declining for the past few weeks and it looks like this movement will continue. Currently, the price is creating the rectangle pattern, which promotes a breakout of its lower line and a further drop.
JPY is gaining strength across the globe (maybe aside from GBPJPY). We’ve got an interesting bearish setup on the NZDJPY pair. What we have here is a rare combination of head and shoulders, false breakout, and a breakout of the upwards trend line. The one thing missing for a full, legitimate sell signal is a breakout of the 78.5 support.
USDCHF is very close to a major sell signal. All it needs to do is to break the lower line of the long-term wedge and the neckline of the head and shoulders formation. Only this would be a significant reason to go short.