CAD/JPY showed a minor pullback on the strong Canadian dollar. It hit an intraday high of 104.90 and is currently trading around 104.32.
Canada is releasing its February 2025 retail sales report today, March 21, 2025, at 12:30 GMT. Following the 0.4% decline in January, a 0.3% MoM rise in retail sales and a 0.6% rise in core retail sales are expected. The report is a key indicator of consumer spending and growth, and its release can impact the Canadian dollar and monetary policy at 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 105; a breach above this level could shift targets to 106/107.40/108/108.35/109.30/110. On the lower side, near-term support is at 103.75 and a break below this support could lead to declines toward 103/102/101.50.
Indicator Trends
CCI (50)- Bullish
ADX (14)- Neutral
Trading Strategy Recommendation
It is good to buy on dips around 104 with a stop-loss set around 103 and a target price of 107.40.
