Caution Advised on Upside Potential for the CAD/JPY Pair Amid Falling Unemployment Rate

Caution over upside potential for the CAD/JPY pair following a drop in the unemployment rate

14.07.2025

Last weekend, the Canadian dollar rose against the yen following the release of Canada’s June employment statistics on the 11th, which showed the unemployment rate falling by 0.1 percentage points from the previous month’s 7.0% to 6.9%. The CAD/JPY pair rose from 106.567 to 107.849, showing an uptrend along the 20-period moving average on the hourly chart.On the 4-hour chart, the candlesticks have extended to the +3σ level of the Bollinger Bands, while on the daily chart, the price has rebounded from retesting the 200-day SMA as a support level.

Among European currencies, the pound weakened against the U.S. dollar. The GBP/USD pair fell from 1.3585 to 1.3481. A downtrend has formed along the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the RSI has dropped to 28. The price has touched the -3σ line of the Bollinger Bands. On the daily chart, the price has broken significantly below the 20-period MA, which had previously served as support, with a real body candle.

Today’s economic indicators include Japan’s machinery orders at 8:50 a.m., Japan’s industrial production and tertiary industry activity index at 1:30 p.m., Switzerland’s producer import prices at 3:30 p.m., and Canada’s wholesale sales at 9:30 p.m. We should remain cautious about the upside potential for the CAD/JPY pair, which has risen on the back of a decline in the unemployment rate.