Market participants may be waiting to see if the Canadian dollar has room to recover as resistance builds
22.05.2025
- Summary of the ECB Governing Council Meeting Released
- Prices of Agricultural and Industrial Products
In yesterday’s U.S. trading session, the Canadian dollar weakened against the yen. The CAD/JPY pair fell from 104.002 to 103.353. Price action was seen fluctuating around the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, price action has stalled as the 200-period exponential moving average (EMA) acts as resistance, and on the daily chart, the pair is already trading below the 20-period MA, indicating significant resistance on the upside.I will wait and see if the Canadian dollar continues to weaken during today’s U.S. trading session.
Among European currencies, the pound weakened the most after the U.S. dollar. GBP/JPY fell from 193.468 to 192.576, with the decline tracking the 20-period moving average on the hourly chart.On the 4-hour chart, candlesticks have fallen from the +2σ to the -3σ levels of the Bollinger Bands, and on the daily chart, the pair is currently searching for direction just below the zone where short- and long-term moving averages converge. We will closely monitor the direction to see if the pound continues to weaken against the yen.
Today’s schedule includes remarks by Bank of Japan Board Member Noguchi at 10:30, Japan’s machine tool orders at 15:00, remarks by BOE Deputy Governor Breeden at 16:15, Germany’s manufacturing and non-manufacturing PMIs at 16:30, the Eurozone’s manufacturing and non-manufacturing PMIs and Germany’s IFO Business Climate Index at 17:00, and the UK’s manufacturing andNon-Manufacturing PMI; at 20:30, the release of the minutes from the European Central Bank (ECB) Governing Council meeting; at 21:30, Canada’s Industrial Product Prices and U.S. Initial Jobless Claims; at 22:45, U.S. Manufacturing/Non-Manufacturing PMI; and at 23:00, U.S. Existing Home Sales. We intend to cautiously monitor the Canadian dollar’s potential for recovery as it faces resistance on the upside.
Author: Keisuke Sakurai
