Watch for upside potential in the CAD/JPY pair following the higher-than-expected Canadian CPI reading

Watch for upside potential in the CAD/JPY pair following the higher-than-expected Canadian CPI reading

19.02.2025

In yesterday’s U.S. currency trading, the Canadian dollar rose against the yen after Canada’s January Consumer Price Index (CPI), released yesterday, showed a year-over-year increase of 1.9%, up 0.1 percentage points from the previous month’s 1.8%. The CAD/JPY pair traded between 106.595 and 107.223, with price action fluctuating around the 20-period moving average on the hourly chart.On the daily chart, the price is forming a pattern with higher lows, so we should remain cautious about the potential for the Canadian dollar to rise during U.S. trading hours.

European currencies saw the euro weaken during U.S. trading hours. In contrast to the rising USD/JPY, the EUR/JPY faced resistance at higher levels and fell from 159.196 to 158.375. On the 4-hour chart, the RSI continues to decline gradually, while the daily chart shows the downtrend that began late last year is still ongoing. We will be watching closely to see if the euro rebounds during European trading hours.

Today’s schedule includes Japan’s machinery orders and trade balance (customs-based) at 8:50, the RBNZ policy rate and statement at 10:00, China’s new home sales prices at 10:30, the UK’s Consumer Price Index and retail sales at 16:00,UK Producer Price Index, at 5:00 PM South African Consumer Price Index, at 6:00 PM Eurozone Current Account, at 8:00 PM South African Retail Sales, at 9:00 PM US MBA Mortgage Applications Index, at 10:30 PM US Housing Starts, and at 10:00 PM the release of the US FOMC Minutes.Keep an eye on the upside potential for the CAD/JPY pair, which rose following the stronger-than-expected 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