Will the Canadian dollar, which has fallen against the yen, recover, or should we wait and see?
12.02.2026
- UK Industrial Production
- Japan: Domestic Corporate Prices
In U.S. currency trading the previous day, the Canadian dollar fell against the yen. The CAD/JPY pair dropped from 114.014 to 112.520. It declined while facing resistance at the 10-period moving average (MA) on the hourly chart.On the 4-hour chart, the price has already broken below the 200-SMA support line with a real-body candle, and on the daily chart, the price has fallen to just below the 75-MA. Furthermore, as the price continues to test lower levels during today’s Asian session, we should remain vigilant regarding the possibility of the Canadian dollar weakening further during U.S. trading hours.
Among European currencies, the pound fell against the U.S. dollar. The GBP/USD pair dropped from 1.3711 to 1.3609. On the hourly chart, it fell from the +3σ to the -2σ levels of the Bollinger Bands.On the 4-hour chart, price action appears to be searching for direction just below the 20-period moving average (MA). Similarly, on the daily chart, price action is lacking direction just below the 20-period MA. On the weekly chart, prices are rebounding off the 10-period MA as a support level, so we will be closely monitoring any further weakness in the pound heading into the weekend.
Today’s economic indicators include Japan’s Domestic Corporate Goods Price Index at 8:50, the UK’s RICS House Price Index at 9:01, the UK’s Real GDP, Industrial Production, and Manufacturing Output at 16:00, South Africa’s Manufacturing Output at 20:00,at 22:30, U.S. Initial Jobless Claims; at 24:00, U.S. Existing Home Sales; at 24:30, U.S. Weekly Natural Gas Inventories; at 27:00, U.S. 30-Year Treasury Auction;at 28:30, remarks by German Bundesbank President Nagel; and at 6:30 the following day, New Zealand Manufacturing PMI. I’d like to wait and see if the Canadian dollar, which has fallen against the yen, will recover.
Author: Keisuke Sakurai
