Will the Canadian dollar, which has fallen against the yen, recover, or should we wait and see?

Will the Canadian dollar, which has fallen against the yen, recover, or should we wait and see?

12.02.2026

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 (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 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. On the hourly chart, it fell from the +3σ to the -2σ Bollinger Band.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 German Bundesbank President Nagel; 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.

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