Should we be wary of further downside potential in the falling CAD/JPY pair?

Should we be wary of further downside potential in the falling 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. The decline occurred as the pair 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 bearish candle. On the daily chart, the pair has hit a new low for the month, and the downtrend following the pullback from the 200-SMA continues.

Among European currencies, the euro saw a seesawing trend 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-day moving average (MA). Similarly, on the 4-hour chart, the pair has been hovering near the 20-day MA, while on the daily chart, it continues to trade around the 10-day MA. 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 Orr’s press conference at 11:00, the German GfK Consumer Confidence Index at 18:30, the U.S. MBA Mortgage Applications Index and Mexico’s trade balance at 21:00,at 10:30 PM, the U.S. Initial Jobless Claims, U.S. Real GDP, U.S. Wholesale Inventories, and U.S. Durable Goods Orders; at 11:45 PM, the U.S. Chicago PMI; at 12:00 AM, U.S. Personal Income and the U.S. PCE Deflator; and at 1:00 AM, Russian Employment Statistics. We should remain highly vigilant regarding the downside potential of the falling CAD/JPY pair.