CAD/JPY gained slightly on board-based Canada dollar buying. It hit a high of 104.05 at the time of writing and is currently trading around 103.91.
The Canada Ivey Purchasing Managers Index (PMI) for April 2025 decreased to 47.9 from 51.3 in March, its first decline in economic activity since January, with a declining employment index (48.0) reporting job shedding. The price index also declined to 70.0, whereas inventories increased slightly to 53.1. A PMI below 50 reflects a decline in economic activity overall
Technical Analysis
CAD/JPY is currently trading above the 34- and 55-EMA on the 4-hour chart. The immediate resistance is at 104.20; a breach above this level could shift targets to 105/105.51/106/107/108.25. On the lower side, near-term support is at 103.50 and a break below this support could lead to declines toward 103/102.50/10.65/101/100.
Indicator Trends
CCI (50)- Bullish
ADX (14)- Neutral
Trading Strategy Recommendation
It is good to buy on dips around 103.40 with a stop-loss at 102.50 and a target price of 106.
