CAD/JPY Surges as Canada's Job Boom Fuels Bullish Momentum

CAD/JPY showed a minor pullback after strong Canadian employment data. It hits an intraday high of 107.57 and is currently trading around 107.47.

Canada's labor market demonstrated surprising strength in June 2025, with an addition of 83,100 jobs, significantly exceeding expectations and marking the first substantial gain since January. This led to an unexpected drop in the unemployment rate to 6.9% from 7.0%, despite forecasts for an increase. The growth was largely driven by part-time positions, with notable gains in wholesale and retail trade, healthcare, and manufacturing, though agriculture saw a decline. This robust employment report suggests unexpected resilience in the Canadian economy, especially amidst ongoing U.S. tariff pressures, and is likely to influence the Bank of Canada's upcoming interest rate decision, reducing the likelihood of a rate cut.

Technical Analysis

CAD/JPY is currently trading above the 34- and 55-EMA on the 4-hour chart. The immediate resistance is at 107.60; a breach above this level could shift targets to 108.25/109/110. On the lower side, near-term support is at 106.50,and a break below this support could lead to declines toward 105.80/105/104.78/104.50/103.85/103/102.50/10.65/101/100.

Indicator Trends

 CCI (50)- Bullish

ADX (14)-  Bullish

Trading Strategy Recommendation

It is good to buy on dips around 107.25-30 with a stop-loss at 106.50 and a target price of 109.