FxWirePro- CADJPY Trade Idea

CAD/JPY showed a minor pullback from a temporary low of 103.20. It hit a high of 104.74 and is currently trading around 103.96.

Statistics Canada reported a 0.3% rise in monthly Canadian GDP for January 2025, fueled by growths in mining, quarrying, oil and gas extraction, wholesale trade, and transportation and warehousing. This comes after a 0.2% growth in December 2024, fueled by retail trade, manufacturing, and construction industries. The strong January readings follow Canada's solid fourth-quarter performance in 2024, which recorded an annualized rate of economic growth of 2.6%, beating initial predictions. Current forecasts suggest sustained economic momentum into the first quarter of 2025, with a growth rate of about 2.0% anticipated.

Technical Analysis

CAD/JPY is currently trading below the 34- and 55-EMA on the 4-hour chart. The immediate resistance is at 105.05; a breach above this level could shift targets to 106/107.40/108/108.35/109.30/110. On the lower side, near-term support is at 103 and a break below this support could lead to declines toward 102/101.50.

Indicator Trends

 CCI (50)- Bearish

ADX (14)- Neutral

Trading Strategy Recommendation

It is good to sell on rallies around  105 with a stop-loss set around 106. 10 and a target price of 101.60.