Keep an eye on the direction of the CAD/JPY pair following the decline in Canada’s CPI

Keep an eye on the direction of the CAD/JPY pair following the decline in Canada’s CPI

18.12.2024

In yesterday’s U.S. currency trading, the Canadian dollar fell against the yen after Canada’s November Consumer Price Index, released yesterday, showed a year-over-year decline from 2.0% in the previous month to 1.9%. The CAD/JPY pair fell from 108.410 to 107.051, breaking below the support line of the 200-period simple moving average (SMA) on the hourly chart.On the 4-hour chart, the pair is rebounding from the 200-period EMA, which is acting as a resistance level, and on the daily chart, it has begun to decline after touching the 20-period MA.

Among European currencies, the pound rose against the U.S. dollar. The GBP/USD pair climbed from 1.2665 to 1.2728. The upward trend along the 20-period moving average (MA) on the hourly chart continued. On the 4-hour chart, the pair has broken above the 20-period MA, which had been acting as a resistance line, and on the daily chart, it has rebounded firmly before reaching last month’s low. We will be watching price movements during U.S. trading hours to see if the pound’s rebound continues.

Today, at 4:00 PM, the UK Consumer Price Index, UK Producer Price Index, and UK Retail Sales will be released; at 6:30 PM, remarks by Nagel, President of the German Federal Bank; at 7:00 PM, the Eurozone Consumer Price Index; at 8:00 PM, the UKCBI Business Survey, at 9:00 PM the US MBA Mortgage Applications Index, at 10:30 PM US Housing Starts, at 12:30 AM US Weekly Crude Oil Inventories, at 4:00 AM the US FOMC policy rate decision and statement, and at 4:30 AM remarks by US Federal Reserve Chair Powell. I intend to carefully monitor the direction of the CAD/JPY pair, which fell following the decline 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