CAD/JPY showed a minor sell-off on board-based Yen buying. It hit an intraday low of 102.03 and is currently trading around 102.10.
Canada's March 2025 CPI showed a surprise slowdown, rising 2.3% year-over-year, following 2.6% in February, led by falling gas prices and travel spending on tours. Monthly CPI rose 0.3%, short of forecasts. Core inflation remained steady at about 2.5%. Temporary tax cuts that expired gave a boost to price pressure. This slowing down has also prompted speculation over what the Bank of Canada will do next with monetary policy since it must balance declining headline inflation against persistent core inflation and economic slowing concerns.
Technical Analysis
CAD/JPY is currently trading below the 34- and 55-EMA on the 4-hour chart. The immediate resistance is at 102.65; a breach above this level could shift targets to 103.26/103.60/104. On the lower side, near-term support is at 101.67 and a break below this support could lead to declines toward 101/100.
Indicator Trends
CCI (50)- Bearish
ADX (14)- Bearish
Trading Strategy Recommendation
It is good to sell on rallies around 103 with a stop-loss set around 104 and a target price of 100.
