Should we keep an eye on the CAD/JPY pair, which hit a new high this year following a surprise rate hike?

Should we keep an eye on the CAD/JPY pair, which hit a new high this year following a surprise rate hike?

08.06.2023

In yesterday’s U.S. currency markets, the Canadian dollar rose against the yen after the Bank of Canada (BOC) announced its policy rate decision, surprising the market by raising rates by 0.25% instead of keeping them steady as expected. The CAD/JPY pair rose from 103.706 to a new high for the year, reaching 104.877. The price extended its gains to touch the +3σ line of the 4-hour Bollinger Bands.From a technical perspective, the CAD/JPY pair continues its daily uptrend that began on March 24 of this year, with the daily RSI hovering around 70. We need to assess the direction to determine whether the Canadian dollar’s upward momentum will continue.

European currencies rose against the yen after Germany’s April industrial production figures were released yesterday, showing a year-on-year increase of 1.6%—exceeding the preliminary estimate of 1.4%.The EUR/JPY pair rose from 148.637 to 150.016. It rebounded after finding support at the 200-period simple moving average (SMA) on the 4-hour chart. On the daily chart, the 20-period moving average (MA) is acting as a support level, and since the centerline of the Bollinger Bands remains upward-sloping, we will be watching closely to see if further gains are expected during European trading hours.

Today’s schedule includes: Eurozone real GDP and South Africa’s current account balance at 6:00 PM; South Africa’s manufacturing output at 8:00 PM; Mexico’s consumer price index at 9:00 PM; remarks by SNB Governor Jordan at 9:05 PM; U.S. initial jobless claims at 9:30 PM; U.S. wholesale inventories at 11:00 PM;at 11:30 PM: U.S. weekly natural gas inventories, and at 4:10 AM: remarks by BOC Deputy Governor Beaudry. We will be watching for upside potential in the CAD/JPY pair, which has risen following the surprise rate hike.

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