FxWirePro- CADJPY Trade Idea

CAD/JPY  trades slightly higher on board- based Canadian dollar buying. It hits an intraday high of 103.51 and is currently trading around 103.29.

In the wake of the United States tariff freeze on Canadian exports, the Canadian dollar (CAD) has made a remarkable comeback, posting its biggest weekly gain in five years and hitting multi-month highs against the U.S. dollar (USD). The rise was prompted by lower trade policy uncertainty, favorable trade trends such as Canada's trade surplus, and a change in market perception questioning the sustainability of tariffs. The CAD has also been boosted by hopes of Federal Reserve rate cuts, possible slowing of Bank of Canada rate cuts, and warning from analysts that extended tariffs would erase all these gains.

Technical Analysis

CAD/JPY is currently trading below  the 34- and 55-EMA on the 4-hour chart. The immediate resistance is at 104; a breach above this level could shift targets to 104.60/105/ 106/107.40/108/108.35/109.30/110. On the lower side, near-term support is at 102.60 and a break below this support could lead to declines toward 101.80/100.

Indicator Trends

 CCI (50)- Bearish

ADX (14)- Neutral

Trading Strategy Recommendation

It is good to sell on rallies around 104 with a stop-loss set around 105 and a target price of 101.50./100.