Sell CAD/JPY to play potential CAD weakness

A 25 basis points rate hike has been priced-in. CAD is overbought. Profit taking could be seen after the BoC rate hike. The best pair to play the CAD weakness is the CAD/JPY pair. This is because the JPY is oversold as well…and due for correction.

Have a look at the daily CAD/JPY pair. The cross is nearing inverse head and shoulder neckline and looks exhausted. The rejection at neckline usually proves deadly.