Will the Canadian dollar, which has risen against the yen, reach a new high? Caution is advised.
28.08.2025
- Japan: Foreign and Domestic Securities Investment
- U.S. GDP deflator
In yesterday’s U.S. currency trading, the Canadian dollar was the strongest performer during U.S. trading hours. The CAD/JPY pair rose from 106.343 to 107.001.The pair rose, supported on the downside by the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, it is attempting to break above the 200-period exponential moving average (EMA), and on the daily chart, the 200-period simple moving average (SMA) is acting as a support level, with prices currently trending upward. We will be watching for economic data releases during U.S. trading hours to see if the Canadian dollar’s rally continues.
Among European currencies, the euro saw a seesaw movement against the U.S. dollar. The EUR/USD pair traded between 1.1574 and 1.1646. It showed a recovery from the -3σ level of the hourly Bollinger Bands. On the 4-hour chart, price action is searching for direction near the 20-period moving average (MA), and on the daily chart, prices are stagnating around 1.165, just below the 20-period MA, mirroring the 4-hour chart.
Today’s schedule includes Japan’s foreign and domestic securities investment data at 8:50, New Zealand’s ANZ Business Confidence Index at 10:00, remarks by Bank of Japan Board Member Nakagawa at 10:30, Eurozone money supply data at 17:00, the Eurozone Consumer Confidence Index and Business Climate Index at 18:00, and South Africa’s Producer Price Index at 18:30.at 8:30 PM, the release of the minutes from the ECB Governing Council meeting; at 9:30 PM, U.S. initial jobless claims, Canada’s current account balance, U.S. real GDP, U.S. personal consumption expenditures, and the U.S. GDP deflator; at 11:00 PM, U.S. pending home sales; and at midnight, the U.S. Kansas City Fed Manufacturing Activity Index.We need to watch for signs of a potential new high for the Canadian dollar, which has been rising against the yen, and remain vigilant regarding its direction.
Author: Keisuke Sakurai
