Should We Wait and See Where the Canadian Dollar Is Headed After Gaining Against the Yen?
15.01.2025
- U.S. - Birkin: Remarks by the President of the Richmond Federal Reserve Bank
- U.S. Consumer Price Index
In U.S. currency trading yesterday, the Canadian dollar rose against the yen. The CAD/JPY pair rose from 109.189 to 110.150, breaking through the resistance line formed by the 200-period SMA on the hourly chart.On the 4-hour chart, the pair failed to set a new high and has since pulled back; on the daily chart, the candlestick has reversed just short of the 200 SMA looming above. We will closely monitor whether the Canadian dollar’s momentum holds during U.S. trading hours.
Among European currencies, the euro emerged as the strongest currency during U.S. trading hours. The euro/yen pair rose from 160.976 to 162.882, breaking well above the upper resistance zone formed by the 200-period SMA on the hourly chart.On the 4-hour chart, the RSI rebounded sharply from 22 to 57. However, during today’s Asian trading session, the euro has weakened again and is offsetting yesterday’s gains.
Today’s schedule includes: Japan’s machine tool orders at 15:00, the UK’s Consumer Price Index and Producer Price Index at 16:00, Eurozone industrial production at 19:00, the U.S. MBA Mortgage Applications Index at 21:00, and Canada’s manufacturing shipments at 22:30,U.S. Consumer Price Index at 10:30 p.m., Canadian Existing Home Sales at 11:00 p.m., remarks by U.S. Richmond Fed President Barkin at 11:20 p.m., U.S. weekly crude oil inventories at 12:30 a.m., and remarks by U.S. New York Fed President Williams at 1:00 a.m.We will closely monitor the direction of the Canadian dollar, which has risen against the yen.
Author: Keisuke Sakurai
