CAD/JPY pared most of its gains after weak Canadian GDP data. It hits an intraday high of 114.45 and is currently trading around 113.81.
Flat at 0.0%, Canada's monthly GDP m/m for November 2025 corroborated preliminary estimates and continued the poor trend following a -0.3% decrease in October; commodities industries declined -0.4% (led by mining/oil/gas -1.6% and construction -0.7%) counterbalanced by services +0.2% (real estate +0.6%, finance +0.3%). December prelims show +0.1% recovery from manufacturing/wholesale, but Q4 annualized growth at just +0.5% lags BoC estimates amid population slowdowns, strikes, and trade problems, supporting holds at 2.25% into 2026 with recession risks; CAD weakens against USD following US PPI heat, looking for USDCAD 1.42 resistance.
Technical Analysis
CAD/JPY is currently trading above the 34- and 55-EMA and below 200 EMA and 365 EMA on the 4-hour chart. The immediate resistance is at 114.50; a breach above that level could shift targets to 115/116/116.91. On the lower side, near-term support is at 113.30, and a break below this support could lead to declines toward 112.60/112/111.69/ 111/110.50/110/109.50/109.
Indicator Trends
CCI (50)- Bullish
ADX (14)- Neutral
Trading Strategy Recommendation
It is good to buy on dips around 113 with a stop-loss at 112 for a target price of 115.
