CADJPY Weakens: Job Data Impact and Technical Analysis Point to Bearish Trends

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.