Will the falling CAD/JPY pair recover? All eyes are on price movements during U.S. trading hours.

Will the falling CAD/JPY pair recover? All eyes are on price movements during U.S. trading hours.

08.08.2025

In yesterday’s U.S. currency markets, the Canadian dollar fell against the yen despite the fact that Canada’s July Ivey Purchasing Managers’ Index, released yesterday, improved to 55.8 from 53.3 the previous month. The CAD/JPY pair fell from 107.512 to 106.894.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 price is searching for direction just below the zone where short- and long-term MAs converge, while on the daily chart, it is attempting to break below the support line near the 200-period SMA.

European currencies saw the euro fluctuate against the yen after Germany’s June industrial production fell to -3.6% year-on-year, down from 1.0% the previous month.The EUR/JPY pair traded between 171.276 and 172.168, fluctuating throughout the session around the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the pair is currently facing resistance at the +2σ level of the Bollinger Bands, while on the daily chart, it is hovering just below the 20-period MA, awaiting the next trend.

Today’s economic indicators include the Japan Household Expenditure Survey at 8:30 a.m., the release of key views from the Bank of Japan’s Monetary Policy Meeting and the Balance of Payments at 8:50 a.m., the Japan Economic Watchers Survey at 2:00 p.m., remarks by MPC member Pill at 8:15 p.m., the Canadian Employment Report at 9:30 p.m., and remarks by Musalem, President of the St. Louis Fed, at 11:20 p.m.Statement by Musalem, President of the St. Louis Fed. We will be watching price movements during U.S. trading hours to see if the Canadian dollar/yen pair, which has been falling, will show signs of recovery.