CAD/JPY showed a minor pullback on strong Canadian GDP data. It hit a high of 105.82 and is currently trading around 105.26.
Canada's GDP numbers, released today at 12:30 PM GMT, showed a 0.4% increase in February 2025, outpacing the forecast of a 0.1% decline, driven by solid performances in wholesale trade, oil and gas extraction, and mining. The sharp growth, from a 0.3% increase in January, shows that the Canadian economy is strong despite global and local challenges. The unexpected enlargement would be positive for market mood and future monetary policy measures by the Bank of Canada.
Technical Analysis
CAD/JPY is currently trading above the 34- and 55-EMA on the 4-hour chart. The immediate resistance is at 106; a breach above this level could shift targets to 107.40/108/108.35/109.30/110. On the lower side, near-term support is at 104.70 and a break below this support could lead to declines toward 103.74/103/102/101.50.
Indicator Trends
CCI (50)- Bullish
ADX (14)- Neutral
Trading Strategy Recommendation
It is good to buy on dips around 104.75 with a stop-loss set around 104 and a target price of 107.40.
