With the Canadian dollar falling against the yen—in contrast to its performance against the U.S. dollar—attention may turn to its downside potential.

With the Canadian dollar falling against the yen—in contrast to its performance against the U.S. dollar—attention may turn to its downside potential.

13.03.2026

In U.S. currency trading yesterday, the Canadian dollar fell against the yen after Canada’s January housing starts, released yesterday, came in lower than expected at a 4.8% increase, down from the previous month’s 6.8% rise. The CAD/JPY pair fell from 117.111 to 116.673.On the hourly chart, the price has fallen from the +2σ level of the Bollinger Bands to the -2σ level. On the 4-hour chart, while the price has not yet fallen below the 20-period moving average (MA), which is acting as support, it has been forming lower highs. On the daily chart, the price has pulled back after touching the +2σ level of the Bollinger Bands.

Among European currencies, the pound fell against the U.S. dollar. The GBP/USD pair fell from 1.3410 to 1.3338. The downtrend along the 20-period moving average (MA) on the hourly chart continued.On the 4-hour chart, the pullback from the 200-period EMA continues, and on the daily chart, the retest of the 20-period MA has been completed, with the pair now back in a downtrend.

Today’s economic indicators include the New Zealand Manufacturing PMI at 6:30, UK GDP, UK Industrial Production, UK Manufacturing Output, and UK Goods Trade Balance at 16:00, the French Consumer Price Index at 16:45, Eurozone Industrial Production at 19:00, and Canada’sEmployment Report, Canadian Manufacturing Shipments, Canadian Q4 Capacity Utilization, U.S. Q4 GDP, U.S. Personal Consumption Expenditures, U.S. PCE Deflator, U.S. Durable Goods Orders, and at 23:00, the U.S. University of Michigan Consumer Sentiment Index and U.S. JOLTS Job Openings.We would like to focus on the downside potential of the Canadian dollar, which has fallen against the yen in contrast to the U.S. dollar.