Should we wait and see how much room the Canadian dollar has to rebound, given its limited upside?

Should we wait and see how much room the Canadian dollar has to rebound, given its limited upside?

10.06.2025

In yesterday’s U.S. trading session, the Canadian dollar weakened against the yen. The CAD/JPY pair fell from 105.847 to 105.281, with price action fluctuating around the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the 20-period moving average is barely holding as support, while on the daily chart, the 200-period simple moving average looms overhead as resistance. We will need to monitor the direction closely to see if the Canadian dollar’s momentum continues to weaken during today’s U.S. trading session.

Among European currencies, the Swiss franc was the weakest during U.S. trading hours. The CHF/JPY pair fell from 176.221 to 175.581, moving across the 20-period moving average on the hourly chart. On the 4-hour chart, while the pair is finding support at the 10-period moving average, it has been unable to break above previous highs; on the daily chart, it is currently pulling back after touching the +3σ line of the Bollinger Bands.

Today’s economic indicators include UK BRC same-store sales at 8:01, Japan’s M2 money supply at 8:50, and Australia’sWestpac Consumer Confidence Index at 8:50, NAB Business Conditions at 10:30, Japanese Machine Tool Orders and UK Unemployment Rate and Employment Statistics at 15:00, US NFIB Small Business Optimism Index at 19:00, South African Manufacturing Output at 20:00, and a US 3-year Treasury auction at 26:00.We intend to cautiously monitor the upside potential of the Canadian dollar, which faces limited upside.

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