Market participants are likely keeping a close eye on the upside potential of the Canadian dollar against the yen, despite the deterioration in Canadian employment data.

Market participants are likely keeping a close eye on the upside potential of the Canadian dollar against the yen, despite the deterioration in Canadian employment data.

12.01.2026

Last weekend, the Canadian dollar rose against the yen despite the December employment statistics released on the 9th showing that the unemployment rate had worsened by 0.3 percentage points from the previous month’s 6.5% to 6.8%. The CAD/JPY pair rose from 113.023 to 113.849, forming an uptrend along the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the 200-period simple moving average (SMA) is acting as a support level, causing prices to rebound, while on the daily chart, the price has broken back above the 20-period moving average (MA) that it had previously fallen below, regaining its previous high.

European currencies fell against the U.S. dollar as Germany’s November industrial production, released on the 9th, remained unchanged from the previous month at 0.8% year-on-year.The euro fell against the U.S. dollar for the fourth consecutive day, dropping from 1.1661 to 1.1617. On the 4-hour chart, the decline was driven by resistance at the 10-day moving average (MA), while on the daily chart, the price broke below the 75-day MA, which had previously provided support. However, during today’s Asian trading session, the pair has fully recovered the losses incurred over the weekend.

Today’s key events include a U.S. 3-year Treasury auction at 25:30, remarks by Bostic, President of the Atlanta Fed, at 26:30, remarks by Barkin, President of the Richmond Fed, at 26:45, a U.S. 10-year Treasury auction at 27:00, and remarks by Williams, President of the New York Fed, at 8:00 the following day.No other notable economic indicators are scheduled for today. We will also keep a close eye on the upside potential for the Canadian dollar against the yen, despite the deterioration in Canadian employment data.