FxWirePro- CADJPY Trade Idea

CAD/JPY showed a minor sell-off due to the strong yen. It hit a high of 108.02 yesterday and is currently trading around 107.10.

On February 4, 2025, when President Donald Trump declared that he was stopping tariffs applied to imports from Canada and Mexico for 30 days, the Canadian dollar increased greatly. He had done this for an opportunity to discuss border security and drug trafficking with the country. Investor confidence rose; that is why the Canadian dollar appreciated the U.S. dollar. Analysts believe that this tariff delay is only a temporary respite for Canadian exporters, who have been living in uncertainty for quite some time. There remains uncertainty about the future U.S. trade policy, especially towards China, because negotiations are ongoing.

Technical Analysis

CAD/JPY is currently trading below the 34- and 55-EMA on the 4-hour chart. The immediate resistance is at 107.40; a breach above this level could shift targets to 108/108.30/109.30/110. On the lower side, near-term support is at 106.75, and a break below this support could lead to declines toward 105.71/105.

Indicator Trends

 CCI (50)- Bearish

ADX (14)- Neutral

Trading Strategy Recommendation

It is good to buy on dips around 107 with a stop-loss set around 106 and a target price of 109.20/110.