Should We Be Wary of Further Downside Potential in the CAD/JPY Pair?

Should We Be Wary of Further Downside Potential in the CAD/JPY Pair?

27.11.2024

In the U.S. currency market yesterday, the Canadian dollar fell against the yen. The CAD/JPY pair dropped from 110.234 to 108.562. It fell as it encountered resistance at the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the price has broken below the 200-period simple moving average (SMA), which had previously been acting as a support line, with a real-body candle. On the daily chart, the price has hit a new low for the month, and the pullback from the 200-SMA continues.

Among European currencies, the euro saw a back-and-forth movement against the U.S. dollar. The EUR/USD pair traded between 1.0424 and 1.0544. On the hourly chart, price action fluctuated around the 20-period moving average (MA).Similarly, on the 4-hour chart, the pair has been trading close to the 20-period moving average, while on the daily chart, it continues to trade near the 10-period moving average. We will be watching closely to see if a clear direction emerges in the EUR/USD price action as U.S. trading hours begin.

Today’s schedule includes the Australian Consumer Price Index at 9:30, the RBNZ policy rate and statement at 10:00, RBNZ Governor O’Hara’s press conference at 11:00, and at 18:30, the GermanGFK Consumer Confidence Survey, at 21:00 the U.S. MBA Mortgage Applications Index and Mexico’s trade balance, at 22:30 U.S. initial jobless claims, U.S. real GDP, and U.S. wholesale inventories,U.S. Durable Goods Orders; at 23:45, the U.S. Chicago Purchasing Managers’ Index; at 24:00, U.S. Personal Income and the U.S. PCE Deflator; and at 25:00, Russian Employment Statistics. We should remain highly vigilant regarding the downside potential of the falling CAD/JPY pair.