Short NZD/CAD using JPY in correlation based trade
Recently (over the past 6 month the NZD has been gaining against the CAD in JPY terms. As the NZD/CAD are a relatively highly correlated pair with the JPY a crossover should be expected in the future. From a technical point of view, NZD/CAD is showing signs of slowing upwards momentum (refer to the one day chart), and even with weak economic data coming from Canada last week, my analysis finds that weakness for the NZD could be near.