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. It moved from the -2σ to the +2σ level on the hourly Bollinger Bands.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, and 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, the UK ILO Unemployment Rate, and the UK Employment Statistics at 4:00 PM; the Swiss Producer Import Prices at 4:30 PM; the Eurozone Current Account at 6:00 PM;at 7:00 PM, the German ZEW Economic Sentiment Index, the Eurozone ZEW Economic Sentiment Index, and Eurozone Construction Output; and at 1:30 AM, remarks by SNB Governor Schlegel and Bundesbank President Nagel are scheduled. I intend to watch the situation cautiously to see if the Canadian dollar, which has strengthened against the yen following a rise in CPI, will extend its gains.