CAD/JPY trades flat despite strong CPI data. It hit a low of 106.59 and is currently trading around 106.88.
Canada's Consumer Price Index (CPI) for January 2025 was released yesterday, February 18, 202512. The CPI rose 1.9% year-over-year from 1.8% in December. Excluding gasoline, the CPI rose 1.7%12.
Key Points:
Monthly Change: Monthly, the CPI rose 0.1% in January from a 0.4% decline in December 12. Seasonally adjusted monthly, the CPI rose 0.1% in January.
Technical Analysis
CAD/JPY is currently trading below the 34- and 55-EMA on the 4-hour chart. The immediate resistance is at 107.35; 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.
