Watch for further downside potential in the Canadian dollar against the yen

Watch for further downside potential in the Canadian dollar against the yen

28.02.2025

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. On the hourly chart, the price moved from above the 20-period moving average (MA) 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 carefully 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 and Switzerland Retail Sales, at 4:45 PM France Consumer Price Index, at 5:00 PM Switzerland KOF Leading Index, at 5:55 PM GermanyEmployment Statistics, 7:30 PM India Real GDP, 10:00 PM Germany Consumer Price Index, 10:30 PM Canada Real GDP, US Personal Income, US PCE Deflator, US Wholesale Inventories, and 11:45 PM US Chicago PMI. Keep an eye on the downside potential for the Canadian dollar, which has fallen against the yen.

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