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 yesterday's U.S. currency trading, the Canadian dollar fell against the yen. The CAD/JPY pair dropped from 114.014 to 112.520, declining as it faced resistance at the 10-period moving average on the hourly chart.On the 4-hour chart, the price has already broken below the 200-period SMA support line with a real body candle, and on the daily chart, the price has fallen to just below the 75-period MA. Furthermore, as the price continues to test lower levels during today’s Asian session, we should remain vigilant for the possibility of further weakness in the Canadian dollar 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. It fell from the +3σ to the -2σ levels on the hourly Bollinger Bands.On the 4-hour chart, price action appears to be searching for direction just below the 20-day moving average (MA). Similarly, on the daily chart, price action lacks direction just below the 20-day MA. On the weekly chart, prices are rebounding off the 10-day 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 20:00,22:30: US Initial Jobless Claims; 24:00: US Existing Home Sales; 24:30: US Weekly Natural Gas Inventories; 27:00: US 30-Year Treasury Auction; 28:30: Remarks by Nagel, President of the German Bundesbank; and 6:30 the following day: NZ Manufacturing PMI.I’d like to wait and see if the Canadian dollar, which has fallen against the yen, will recover.
Author: Keisuke Sakurai
