CAD/JPY trades weak on board-based yen strength. It hit a low of 105.13 and is currently trading around 105.99.
In February 2025, President Trump first imposed tariffs on imports from Canada and Mexico for 30 days as part of agreements that would increase border security and combat drug trafficking. Canada agreed to upgrade its border technology and name a "Fentanyl Czar," and Mexico deployed 10,000 National Guard troops to its border. However, Trump has since initiated 25% tariffs on all steel and aluminum imports, threatening a trade war between the two countries. Canada is likely to retaliate with its tariffs on US goods and bring higher pressure on their negotiations. It will bring higher prices for consumers and economic challenges in North America.
Technical Analysis
CAD/JPY is currently trading below the 34- and 55-EMA on the 4-hour chart. The immediate resistance is at 106.45; a breach above this level could shift targets to 107/108/108.30/109.30/110. On the lower side, near-term support is at 105.10, and a break below this support could lead to declines toward 104.80/104.
Indicator Trends
CCI (50)- Bearish
ADX (14)- Bearish
Trading Strategy Recommendation
It is good to sell on rallies around 107 with a stop-loss set around 108 and a target price of 104.90.
