CAD/JPY gained slightly after upbeat Canadian jobs data. It hits an intraday high of 109.18 and is currently trading around 109.178.
With +67K jobs shattering expectations of -20K losses, Canada's October 2025 jobs report detonated like a bomb, thereby reducing unemployment by 0.2 points to 6.9% and providing back-to-back positive shocks that mostly cleared all summer destruction. With private-sector strength (+73K) led by retail/commerce (+40.7K) and Ontario's 55K control, all gains came from an +85K part-time surge offsetting -18.5K full-time decreases. Youth unemployment eventually dropped to 14.1%. Wages jumped 4.0% year over year to $37.06 an hour, flashing new inflation heat and possibly freezing BoC rate cuts at 2.25% in December; amid BMO's "wild swings" warning, the blockbuster data has USD/CAD at 1.1402 prepared for a Loonie rampage.
Technical Analysis
CAD/JPY is currently trading above the 34- and 55-EMA on the 4-hour chart. The immediate resistance is at 109.60; a breach above that level could shift targets to 110/110.50/111/111.52/112. On the lower side, near-term support is at 10,and a break below this support could lead to declines toward 108.80/108/107.
Indicator Trends
CCI (50)- Bearish
ADX (14)- Neutral
Trading Strategy Recommendation
It is good to buy on dips around 109 with a stop-loss at 108 for a target price of 112.
