Will the Canadian dollar, which has strengthened against the yen following a rise in the CPI, continue to climb, or should we wait and see?

Will the Canadian dollar, which has strengthened against the yen following a rise in the CPI, continue to climb, or should we wait and see?

20.01.2026

In yesterday’s U.S. currency trading, the Canadian dollar rose against the yen after Canada’s December Consumer Price Index, released yesterday, showed a year-over-year increase of 2.4%, up 0.2 percentage points from the previous month’s 2.2%. The CAD/JPY pair rose from 113.287 to 114.082. On the hourly chart, the price moved from the -2σ to the +2σ Bollinger Band.On the 4-hour chart, the RSI rose from 40 to 55. On the daily chart, the candlesticks have rebounded from below the 20-day moving average (MA) back to above it.

Among European currencies, the pound rose against the U.S. dollar. The GBP/USD pair climbed from 1.3343 to 1.3433. A rebound was observed 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, leading to a rebound, while on the daily chart, prices have reversed near the 75-period MA. The pound’s strength continues to build during today’s Asian trading session.

Today’s economic indicators include the German Producer Price Index, UK ILO Unemployment Rate, and UK Employment Statistics at 4:00 PM; Swiss Producer Import Prices at 4:30 PM; the Eurozone Current Account Balance at 6:00 PM;at 7:00 PM: Germany’s ZEW Economic Sentiment Index, the Eurozone’s ZEW Economic Sentiment Index, and Eurozone Construction Output; and at 1:30 AM: remarks by SNB Governor Schlegel and Bundesbank President Nagel. With the Canadian dollar having strengthened against the yen following a rise in CPI, I intend to watch the situation carefully to see if it can extend its gains.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed