Should we be wary of further declines in the CAD/JPY pair following the drop in Canada’s CPI?

Should we be wary of further declines in the CAD/JPY pair following the drop in Canada’s CPI?

21.08.2024

In yesterday’s U.S. currency trading, the Canadian dollar fell against the yen after Canada’s July Consumer Price Index, released yesterday, showed a year-over-year decline of 0.2 percentage points from the previous month’s 2.7% to 2.5%. The CAD/JPY pair fell by approximately 160 pips from 108.050 to 106.454.It touched the -3σ line on the hourly Bollinger Bands. Since the 75-period moving average (MA) is acting as resistance on the 4-hour chart, traders should watch for a continued decline during U.S. trading hours.

Despite the fact that Germany’s July producer price index, released yesterday, improved year-on-year from -1.6% in the previous month to -0.8%, the euro fell against the yen.The EUR/JPY pair fell from 163.194 to 161.357, breaking below the support line of the 200-period simple moving average (SMA) on the hourly chart. On the 4-hour chart, the price has shifted from above the 20-period moving average (MA) to below it. Since the 20-period MA is acting as a resistance level on the daily chart, traders should be cautious of further declines during European trading hours.

Today’s economic indicators include Japan’s customs-based trade balance at 8:50, Australia’s Westpac Leading Economic Index at 9:30, the UK’s public sector net borrowing at 15:00, Thailand’s central bank policy rate at 16:00, South Africa’s consumer price index at 17:00, the U.S. MBA mortgage applications index at 20:00, and Canada’sIndustrial Product Prices and Raw Material Price Index, 23:30 US Weekly Crude Oil Inventories, 26:00 US 20-Year Treasury Auction, and 27:00 US FOMC Minutes release. Be cautious of further declines in the CAD/JPY pair, which fell following the drop in the Canadian CPI.

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