CAD/JPY gained sharply after upbeat Canadian jobs data. It hits an intraday high of 111.81 and is currently trading around 111.69.
Unexpectedly, Canada's labour market in November 2025 created 54,000 jobs (+0.3%), pushing the jobless rate down 0.4 points to 6.5%—its lowest since July 2024—against a projection of a 5,000-job drop. Health care/social help (+46,000) guided the majority of part-time gains (+50,000, mainly youths) and private sector-driven growth (+52,000), along with accommodation/food services and natural resources; wholesale/retail lost 34,000 employment. With participation declining somewhat and salaries up a modest 3.6% year over year, the report marks a third straight robust month (+181,000 jobs since September), relieving tariff-related concerns and lowering the chances of a Bank of Canada rate cut next week from an already-low baseline—prompting a firmer Canadian dollar and decreased market expectations for further easing as labour resilience supports the BoC’s patient posture at 2.25%.
Technical Analysis
CAD/JPY is currently trading above the 34- and 55-EMA and above 200 EMA and 365 EMA on the 4-hour chart. The immediate resistance is at 112; a breach above that level could shift targets to 113/114/114.69. On the lower side, near-term support is at 111.20, and a break below this support could lead to declines toward 110.50/110/109.50/109.
Indicator Trends
CCI (50)- Bullish
ADX (14)- Bullish
Trading Strategy Recommendation
It is good to buy on dips around 111.38-40 with a stop-loss at 110.60 for a target price of 113/115.
