CAD/JPY lost its shine as yen gains momentum. It hits an low of 103.67 and is currently trading around 103.81.
In March 2025, Canadian manufacturing sales dropped 1.4% from the last month to CAD 71.9 billion, the second consecutive monthly decline. 13 of 21 industries declined, with declines in primary metal products (-6.5%) and petroleum and coal products (-4.2%), though furniture and related goods gained 11.9%. Eight provinces experienced decreases in sales, led by Ontario (-1.0%) and Quebec (-1.6%), while Manitoba posted a 2.9% increase in transportation equipment. The national manufacturing sales overall increased by 1.9% compared to last year
Technical Analysis
CAD/JPY is currently trading below the 34- and 55-EMA on the 4-hour chart. The immediate resistance is at 104.50; 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)- Bearish
ADX (14)- Bearish
Trading Strategy Recommendation
It is good to sell on rallies around 104 with a stop-loss at 105 and a target price of 100.
