FxWirePro- CADJPY Trade Idea

CAD/JPY trades flat ahead of Canadian CPI data. It hit a low of 106.59 and is currently trading around 107.06.

CPI Month-over-Month (m/m): The consensus is for an increase of 0.10 to -0.4% in January 2025. This reading will inform us of short-term inflation and consumer price behavior.

Median CPI Year-over-Year (y/y): The median CPI is predicted to increase marginally to 2.4% from the previous month. This measure gives an approximation of core inflation by removing volatile items.

Trimmed CPI Year-over-Year (y/y): The trimmed CPI is also likely to rise to 2.6%, which reflects more stable price movements by leaving out extreme price variability.

Technical Analysis

CAD/JPY is currently trading below the 34- and 55-EMA on the 4-hour chart. The immediate resistance is at 107.20; a breach above this level could shift targets to 108/108.35/109.30/110. On the lower side, near-term support is at 106.50, and a break below this support could lead to declines toward 106/104.80/104.

Indicator Trends

 CCI (50)- Bullish

ADX (14)- Neutral

Trading Strategy Recommendation

It is good to sell on rallies around  107.68-70 with a stop-loss set around 108.35 and a target price of 105.