Will the market wait and see if the fallen CAD/JPY pair has room to recover?
12.06.2025
- Japan's Second-Quarter Business Sentiment Index (BSI)
- U.S. Producer Price Index
In the U.S. currency market yesterday, the Canadian dollar fell against the yen after Canada’s April housing starts data, released yesterday, showed a deterioration from the previous month’s 4.1% decline to a 6.6% decline. The CAD/JPY pair fell from 106.3091 to 105.581. It crossed below the 20-period moving average on the hourly chart.On the 4-hour chart, the price has pulled back from the +3σ line of the Bollinger Bands, and on the daily chart, the upside is being resisted at the 200-day EMA.
Among European currencies, the pound rose against the U.S. dollar. The GBP/USD pair climbed from 1.3463 to 1.3566. On the hourly chart, the price moved from the -3σ to the +2σ Bollinger Band. On the 4-hour chart, the RSI has settled around 50, and on the daily chart, the price has been trading at the same level for about 10 trading days. We will be watching to see if a clear direction for the pound emerges during U.S. trading hours today.
Today’s economic indicators include UK RICS house prices at 8:01, Japan’s Q2 Business Sentiment Index (BSI) at 8:50, UK GDP at 15:00, UKIndustrial Production, UK Manufacturing Output, and UK Goods Trade Balance; at 21:30, US Initial Jobless Claims and US Producer Price Index; at 23:30, US Weekly Natural Gas Inventories; at 26:00, US 30-Year Treasury Auction; and at 7:30 the following day, NZ Manufacturing PMI. I intend to cautiously monitor the potential for a recovery in the CAD/JPY pair following its decline.
Author: Keisuke Sakurai
