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Should We Watch for Upside Potential in the Canadian Dollar, Which Has Risen Against the Yen?

Market Report

Should We Be Wary of the Upside Potential for the Canadian Dollar Against the Yen?

Today's Highlights
  1. German GFK Consumer Confidence Survey
  2. U.S. Second-Quarter GDP

In U.S. currency trading the previous day, the Canadian dollar rose against the yen. The CAD/JPY pair rose from 106.567 to 107.201. It surged from the -2σ to the +2σ levels on the hourly Bollinger Bands.On the 4-hour chart, the price has moved from below the 200 SMA to above it, while on the daily chart, it is currently fluctuating around the 107-yen level near the RSI 50 mark. Although there was a slight pullback during today’s Asian session, the pair is attempting to rise again, so traders should remain cautious of further upside momentum.

European currencies fell, with the euro dropping against the U.S. dollar following yesterday’s release of Germany’s September IFO Business Climate Index, which declined to 87.7 from 89.0 the previous month.The EUR/USD pair fell from 1.1818 to 1.1728. On the hourly chart, the price moved from above the 20-period moving average (MA) to below it. The 4-hour chart showed a similar price movement to the hourly chart, and on the daily chart, the price plummeted from just below the +2σ level of the Bollinger Bands to just below the 20-period MA.

Today, the minutes of the Bank of Japan (BOJ) meeting will be released at 8:50; the German GfK Consumer Confidence Survey at 15:00; the French Consumer Confidence Index at 15:45; and the Swiss National Bank (SNB) policy rate and statement at 16:30;at 5:00 p.m., a press conference by SNB Governor Schlegel; at 7:00 p.m., the UK CBI Retail Trade Survey; at 9:30 p.m., U.S. initial jobless claims and U.S. second-quarter GDP; at 10:00 p.m., remarks by U.S. Federal Reserve Bank of New York President Williams:remarks by New York Fed President Williams; at 23:00, U.S. existing home sales; at 23:30, U.S. weekly natural gas inventories; and at 26:00, remarks by Fed Governor Barr. Keep an eye on the upside potential for the Canadian dollar, which has risen against the yen.

桜井 慶介

Author: Keisuke Sakurai

He has over 10 years of experience in FX trading. In the financial sector, he has been involved in investment management focused primarily on foreign exchange markets and has experience as an asset management advisor. Drawing on his extensive experience, he specializes in technical and fundamental analysis.

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