Should We Be Wary of Further Downside Potential for the Canadian Dollar Against the Yen?
28.02.2025
- Japan/Tokyo Consumer Price Index
- U.S. PCE Deflator
In the U.S. currency market yesterday, 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 Canadian dollars to -4.99 billion Canadian dollars. The CAD/JPY pair fell from 104.671 to 103.573.On the hourly chart, the price has moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the downtrend along the 20-period MA continues, and on the daily chart, the RSI has fallen to 30, indicating an oversold condition.
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 moving average is acting as a resistance zone, while on the daily chart, both the highs and lows are gradually declining. We will need to carefully assess whether the pound will continue to weaken during European trading hours.
Today’s schedule includes Japan’s Consumer Price Index at 8:30, Japan’s Industrial Production, Retail Sales, and Foreign and Domestic Securities Investment at 8:50, the Philippines’ Trade Balance at 10:00, the UK’s Nationwide House Price Index and Turkey’s Employment Statistics at 16:00,at 4:30 PM, Thailand’s trade balance and retail sales; at 4:30 PM, Switzerland’s retail sales; at 4:45 PM, France’s Consumer Price Index; at 5:00 PM, Switzerland’s KOF Leading Index; at 5:55 PM, Germany’s employment statistics; at 7:30 PM, India’s real GDP;at 10:00 p.m., Germany’s Consumer Price Index; at 10:30 p.m., Canada’s Real GDP, U.S. Personal Income, U.S. PCE Deflator, and U.S. Wholesale Inventories; and at 11:45 p.m., the U.S. Chicago Purchasing Managers’ Index. Investors should watch for further downside potential in the Canadian dollar against the yen.
Author: Keisuke Sakurai
