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 mixed trading 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 remained close to the 20-day MA, while on the daily chart, it continues to trade near the 10-day MA. We will be watching closely to see if a clear direction emerges in the EUR/USD pair as U.S. trading hours begin.

Today, at 9:30 AM, Australia’s Consumer Price Index will be released; at 10:00 AM, the RBNZ will announce its policy rate and statement; at 11:00 AM, RBNZ Governor Orr will hold a press conference; at 6:30 PM, Germany’s GfK Consumer Confidence Index will be released; at 9:00 PM, the U.S. MBA Mortgage Applications Index and Mexico’s trade balance will be released;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.

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