CAD/JPY Powers Above 108 as Yen Weakness Fuels Fresh Highs

CAD/JPY gained above the 108 level on board-based yen weakness. It hits an intraday high of 108.07 and is currently trading around 108.

With the slide mostly fueled by declining new vehicle sales and ongoing weakness at gas stations as well as falls in food, drink, and online sales, Canada's retail sales decreased by 1. 1% in May 2025, marking the first fall in three months; however, a preliminary estimate for June shows a strong 1. 6% rebound—the finest increase since December—pointing to stability in consumer demand despite lingering trade uncertainties and weak core sales. Early indications point to a stronger economic footing as the second half of the year starts, but experts remain divided on how lasting this recovery will be, given persistent regional inequalities and wary household sentiment.

Technical Analysis

CAD/JPY is currently trading above the 34- and 55-EMA on the 4-hour chart. The immediate resistance is at 108.25; a breach above this level could shift targets to 108.75/109/110. On the lower side, near-term support is at 107.45, and a break below this support could lead to declines toward 107.25/106.56/105.80/105/104.78/104.50/103.85/103/102.50/10.65/101/100.

Indicator Trends

 CCI (50)- Bullish

ADX (14)-  Neutral

Trading Strategy Recommendation

It is good to buy on dips around 107.80 with a stop-loss at 106.84 and a target price of 110.