FxWirePro-CADJPY Trade Idea

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.