Watch for further downside potential in the Canadian dollar against the yen
28.02.2025
- Japan/Tokyo Consumer Price Index
- U.S. PCE Deflator
In yesterday’s U.S. currency trading, the Canadian dollar fell against the yen after Canada’s fourth-quarter current account balance, released yesterday, worsened from the previous reading of -3.23 billion CAD to -4.99 billion CAD. The CAD/JPY pair dropped from 104.671 to 103.573. It moved from above the 20-period moving average (MA) on the hourly chart to below it.On the 4-hour chart, the downtrend along the 20-period moving average continues, and on the daily chart, the RSI has fallen to 30, indicating oversold conditions.
Among European currencies, the pound fell against the yen. The GBP/JPY pair dropped from 190.095 to 188.561. It declined as it encountered resistance at the 200-period SMA on the hourly chart. On the 4-hour chart, the 75-period MA is acting as a resistance level, while the daily chart shows a gradual downward trend in both highs and lows. We will need to monitor the situation closely to see if the pound continues to weaken during European trading hours.
Today, at 8:30 AM, Japan’s Tokyo Consumer Price Index; at 8:50 AM, Japan’s Industrial Production, Retail Sales, and Foreign/Domestic Securities Investment; at 10:00 AM, the Philippines’ Trade Balance;at 4:00 PM UK Nationwide House Price Index and Turkey Employment Statistics, at 4:30 PM Thailand Trade Balance, at 4:30 PM Switzerland Retail Sales, at 4:45 PM France Consumer Price Index, at 5:00 PM Switzerland KOF Leading Index, at 5:55 PM GermanyEmployment Report at 17:00, India’s Real GDP at 19:30, Germany’s Consumer Price Index at 22:00, Canada’s Real GDP, U.S. Personal Income, U.S. PCE Deflator, and U.S. Wholesale Inventories at 22:30, and the U.S. Chicago PMI at 23:45. Keep an eye on the downside potential for the Canadian dollar, which has fallen against the yen.
Author: Keisuke Sakurai
