Should we keep an eye on the direction of the CAD/JPY pair, given its limited downside?

Should we keep an eye on the direction of the CAD/JPY pair, given its limited downside?

07.03.2023

In the previous day’s U.S. trading session, the Canadian dollar weakened, while it remained range-bound against the yen. The CAD/JPY pair traded in a narrow range between 99.594 and 100.088, showing a lack of directional momentum.Technically, the CAD/JPY pair is in the process of narrowing its trading range around the 20-period moving average (MA) on the hourly chart, and on the 4-hour chart, it is positioned between the 75-period and 20-period MAs. Since no RSI divergence is observed, we will be watching closely to see if prices extend their gains during U.S. trading hours.

Among European currencies, the Swiss franc rose against the yen after yesterday’s release of the February Consumer Price Index (CPI) showed a 0.1 percentage point year-over-year increase to 3.4%. The CHF/JPY pair rose from 144.714 to 146.036.The pair rebounded, finding support at the 75-period moving average (MA) on the 4-hour chart. During today’s Asian trading session, CHF/JPY has continued yesterday’s trend, rising to 146.196. The 4-hour RSI has risen from 42 and is currently hovering around 65, so it will be worth watching whether this trend continues into the European session.

Today, at 15:45 Asia time, Swiss unemployment figures; at 16:00 European time, German manufacturing orders and UK Halifax house prices; at 18:30, South African Q4 GDP; at 24:00 U.S. time, U.S. wholesale inventories;Fed Chair Powell’s congressional testimony, at 27:00 Swiss National Bank (SNB) Governor Jordan’s remarks, a U.S. 3-year Treasury auction, and at 29:00 U.S. consumer credit balances. We will be watching the direction of the CAD/JPY pair, which has limited downside potential.

Past Market Reports

1. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 15.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 14.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

7. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 10.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

9. 09.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran