Will the market wait and see how the CAD/JPY pair recovers from its decline?
25.03.2024
- U.S. New Home Sales
- Bostic (U.S.): Remarks by the President of the Atlanta Federal Reserve Bank
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 has fallen 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 UK CBI Retail Trade Survey at 8:00 p.m., and remarks by Bostic at 9:15 p.m.:remarks by the President of the Atlanta Fed, 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 CAD/JPY pair following its decline.
Author: Keisuke Sakurai
