CADJPY trades weak after weak Canadian employment data. It hits an intraday low of 105.82 with current trading around 106.03.
In November 2024, Canada added 51,000 jobs, a 0.2% increase, indicating a rebound in the labor market after little change in October. The unemployment rate rose to 6.8% due to more people looking for work, despite job growth. Most new jobs came from the public sector, particularly in healthcare and education. This increase shows a stronger job market and positive signs for Canada's economic future.
Technical Overview: Navigating Market Trends
From a technical perspective, CADJPY is currently trading below the 34- and 55-EMA on the 4-hour chart. The immediate near-term resistance sits at 107.60, and a breach above this level could see targets shift to 108/108.52/108.65, 109, 110, and ultimately 112. Conversely, immediate support is noted at 106.70; a breach below this support could lead to declines toward 106.20, and 104.85.
Market Indicators: Bearish Trend Signal
Examining the 4-hour chart indicators: the CCI (14) is bearish, while the ADX indicates a neutral position. Overall, the indicators reveal a mixed trend, suggesting caution in trading decisions.
Trading Strategy: Selling on Rallies
Considering the analysis above, it may be prudent to sell on rallies around 107.38-40 setting a stop loss (SL) around 108, with a take profit (TP) target adjusted to 104.90. This approach aligns with current market signals and technical analysis.
