CAD/JPY: Is 106.85 in Sight? Technicals Point to Further Upside

CAD/JPY  gained slightly due to strong Canadian dollar. It hits an high of 103.94 previous week and is currently trading around 103.42.

Canadian retail buys decreased 0.4% in February 2025 to C$69.3 billion largely due to the decline in the sale of motor vehicles and automotive products. Core sales, excluding some industries, increased by 0.5% over the sales of beverages and food. March 2025 recovery projections were initially established at 0.7%, maybe caused by consumers pre-buying due to impending increased tariffs. Economists were also being guarded due to persisting issues over wages, jobs, and inflation.

Technical Analysis

CAD/JPY is currently trading above the 34- and 55-EMA on the 4-hour chart. The immediate resistance is at 104; a breach above this level could shift targets to 105/106/106.85. On the lower side, near-term support is at 102.90 and a break below this support could lead to declines toward 102.50/10.65/101/100.

Indicator Trends

 CCI (50)- Bullish

ADX (14)- Bullish

Trading Strategy Recommendation

It is good to buy on dips around 102.90 with a stop-loss at 102 and a target price of 106.85.