Yen was the top performer this week, CAD lagged
Terrible risk sentiment and a collapse in oil prices, you better believe CAD/JPY got creamed this week.
Here is the survey of the wreckage.
CAD/JPY will close today at the lowest in nearly 3 years. The August intraday low was 87.46 but some of the yen lows that day came in ultra-thin liquidity so I'm tempted to brush them aside and focus on the break of the other Aug/Sept lows.
In any case, CAD/JPY is in the midst of a 500-pip freefall and I wouldn't want to be the one to catch the falling knife.
Aside from the CAD story, there's a compelling reason for yen longs. There are real worries kicking up in markets and Japan seems to have lost its enthusiasm for QE. Citi is talking about more easing in January but I don't see any signs it's coming and a cheap yen hasn't been the inflation-producing, economy-growing elixir the Japanese hoped.