CAD/JPY Soars on Jobs Data: Is 107 Next?

CAD/JPY  gained sharply after jobs data. It hit an intraday high of 106.01 and is currently trading around 105.79.

May 2025 saw remarkable labor market resiliency in Canada with the addition of 8,800 jobs against a predicted loss of -12,500, however, the unemployment rate rose to 7.0%, its greatest since 2016 (excluding the pandemic) owing to labor force expansion and industrial difficulties. The headline gain was fueled by 57,700 full-time jobs, thus counterbalancing a loss of 48,800 part-time jobs; the trade sector rebounded by 43,000 jobs; accommodation, food services, and transportation each lost 16,000 jobs. Although the employment surprise was good, the growing unemployment rate and sectorial downturn point to the Bank of Canada's likely cautious stance based on future interest rate cuts on additional labor markets and more general economic events.

Technical Analysis

CAD/JPY is currently trading above the 34- and 55-EMA on the 1-hour chart. The immediate resistance is at 106.20; a breach above this level could shift targets to 107/108.25. On the lower side, near-term support is at 105.30,and a break below this support could lead to declines toward 104.80/104.50/103.85/103/102.50/10.65/101/100.

Indicator Trends

 CCI (50)- Bullish

ADX (14)-  Bullish

Trading Strategy Recommendation

It is good to buy on dips around 105.30-35 with a stop-loss at 104.50 and a target price of 107.