Should we wait and see how the CAD/JPY pair recovers from its decline?

Should we wait and see how the CAD/JPY pair recovers from its decline?

25.03.2024

Last weekend, the Canadian dollar fell against the yen after Canada’s January retail sales figures, released on the 22nd, came in at -0.3%, down from 0.9% the previous month. The CAD/JPY pair fell from 112.181 to 110.026.The price fell to near the 200-period EMA on the hourly chart. However, during today’s Asian session, the -2σ Bollinger Band on the hourly chart has acted as support, and the pair is testing the upside, so we will be watching price action during the European session.

Among European currencies, the pound fell against the U.S. dollar. The GBP/USD pair dropped from 1.2675 to 1.2575. On the 4-hour chart, the RSI fell to 30. On the daily chart, the 200-day SMA is acting as support, but since the daily RSI continues to decline after touching 70, we will be watching closely to see if the GBP/USD pair will stage a temporary rebound.

Today’s schedule includes the release of the BOJ meeting minutes at 8:50 a.m., the Japan Leading Economic Index at 2:00 p.m., the CBI Retail Trade Survey at 8:00 p.m., and remarks by Bostic, President of the Atlanta Fed, at 9:15 p.m.remarks by Atlanta Fed President Bostic, at 9:30 PM the US Chicago Fed National Activity Index, at 11:00 PM US new home sales, at 11:15 PM remarks by a member of the Bank of England’s Monetary Policy Committee (MPC), at 11:30 PM the US Dallas Fed Manufacturing Activity Index and remarks by Fed Governor Cook, and at 2:00 AM a US 2-year Treasury auction.We intend to cautiously monitor the recovery potential of the Canadian dollar against the yen following its decline.

Past Market Reports

1. 17.04.2026New

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

2. 16.04.2026New

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

3. 15.04.2026New

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

4. 14.04.2026New

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

5. 13.04.2026New

   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

6. 10.04.2026

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

7. 09.04.2026

   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?

8. 08.04.2026

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

9. 07.04.2026

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

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed