CAD/JPY has been consolidating in a narrow range between 117.18 and 116.03 for the past five days. Now trading around 116.39, it reached an intraday high of 116.50.
Canadas 2% goal. Statistics Canada says energy prices declined sharply year over year, especially fuel and natural gas. Gas prices fell 17. 1%, and petrol dropped 14. 2%. Groceries also saw lower price growth at 4. 1%. Core inflation eased to 2. 3%, partly because of tax changes in 2025. The base effect helped make the overall number look lower. Still, housing costs are rising. Mortgage interest costs climbed 10. 1%, and monthly shelter expenses increased by 0. 4%. The Bank of Canada sees this as meaningful progress toward price stability. But rental and mortgage markets remain under stress
Technical Analysis
CAD/JPY is currently trading above the 34- and 55-EMA and 200 EMA and 365 EMA on the 4-hour chart. The immediate resistance is at 116.50; a breach above that level could shift targets to 117.20/118. On the lower side, near-term support is at 115.80,and a break below this support could lead to declines toward 115.40/114.70/114.
Indicator Trends
CCI (50)- Bullish
ADX (14)- Neutral
Trading Strategy Recommendation
It is good to buy on dips around 115.78-80 with a stop-loss at 115 for a target price of 117.25/118.
