Should we keep an eye on the upside potential of the CAD/JPY pair, which has risen on the back of improved manufacturing sales?

Should we keep an eye on the upside potential of the CAD/JPY pair, which has risen on the back of improved manufacturing sales?

16.01.2024

In yesterday’s U.S. currency trading, the Canadian dollar rose against the yen after Canada’s November manufacturing sales, released yesterday, improved to +1.2% from -2.8% the previous month. The CAD/JPY pair rose from 107.856 to 108.757.It temporarily broke above the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, CAD/JPY appears to be rebounding with support from the 75-period MA, so we will be watching to see if the Canadian dollar continues to gain ground through the middle of the week.

Despite the improvement in Germany’s December wholesale price index—which was released yesterday and showed a year-over-year decline of 2.6% compared to the previous month’s 3.6% drop—the euro fell against the U.S. dollar. The EUR/USD pair dropped from 1.0967 to 1.0933, falling to the -3σ level on the hourly Bollinger Bands.The EUR/USD pair has continued to decline during today’s Asian trading session, already dropping to 1.0915. We will closely monitor whether the euro continues to weaken.

Today’s economic indicators include UK employment figures and the German Consumer Price Index at 4:00 PM, the German ZEW Economic Sentiment Index and the Eurozone ZEW Economic Sentiment Index at 7:00 PM, and Israel’s real GDP at 8:00 PM.at 10:15 PM: Canadian housing starts and CPI, and the New York Fed Manufacturing Index; at 12:00 AM: remarks by Bank of England Governor Bailey; and at 1:00 AM: remarks by Federal Reserve Governor Waller. We will be watching for further upside potential in the CAD/JPY pair, which has risen on the back of improved manufacturing sales.

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