With Canada’s CPI rising, should we keep a close eye on the direction of the CAD/JPY pair, which is showing resilience on the downside?

With Canada’s CPI rising, should we keep a close eye on the direction of the CAD/JPY pair, which is showing resilience on the downside?

17.04.2024

In yesterday’s U.S. trading session, the Canadian dollar fell slightly against the yen despite the fact that Canada’s March CPI, released yesterday, rose by 0.1 percentage points year-over-year to 2.9% from the previous month’s 2.8%. The CAD/JPY pair fell momentarily from 112.255 to 111.285.It broke below the 200-period SMA on the hourly chart. On the 4-hour chart, the decline halted upon touching the 200-period EMA, and on the daily chart, it is barely holding above the 20-period MA, so we will be watching for a potential rebound in the Canadian dollar during U.S. trading hours.

The euro rose against the yen as the German ZEW Economic Sentiment Index for April, released yesterday, improved significantly from 31.7 the previous month to 42.9, and the European ZEW Economic Sentiment Index also showed a similar recovery.The EUR/JPY pair rose from 163.667 to 164.675. It broke out from below the 20-period moving average (MA) on the hourly chart to trade above it. While the 4-hour chart continues to show a pattern of lower highs, the 75-period MA is acting as a support level on the daily chart, so we will be watching price action during European trading hours.

Today’s schedule includes the New Zealand Consumer Price Index at 7:45, Japan’s Trade Balance at 8:50, Australia’s Westpac Leading Index at 9:30, the UK Consumer Price Index, UK Retail Sales, and UK Producer Price Index at 15:00, the Eurozone Consumer Price Index at 18:00, South Africa’s Retail Sales at 20:00,U.S. MBA Mortgage Applications at 8:50 AM, UK MPC Member Green’s remarks at 9:05 PM, Canada’s International Securities Turnover at 9:30 PM, U.S. Weekly Crude Oil Inventories at 11:30 PM, UK BOE Governor Bailey’s remarks at 1:00 AM, U.S. 20-Year Treasury Auction at 2:00 AM, and Eurozone ECB President Lagarde’s remarks at 3:00 AM.With the Canadian CPI on the rise, the Canadian dollar/yen pair is finding support at lower levels, so we need to carefully assess its direction.

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