Loonie Gains Momentum: CAD/JPY Eyes 109 After CPI Data

CAD/JPY gained above the 108 level on board-based yen weakness. It hits an intraday high of 108.73 and is currently trading around 108.38.

With the CPI-median index up to 3. 1% year-over-year—a little increase from May's 3. 0%—Canada's inflationary terrain showed conflicting indicators in June 2025, suggesting a marginal acceleration in core inflationary pressures. The CPI-trim indicator stayed flat at 3. 0%, the same as in the previous month, while the CPI-common measure maintained its May level of 2. 6% year-over-year.

Technical Analysis

CAD/JPY is currently trading above the 34- and 55-EMA on the 4-hour chart. The immediate resistance is at 108.75; a breach above this level could shift targets to 109/110. On the lower side, near-term support is at 107.80, and a break below this support could lead to declines toward 107.25/106.56/105.80/105/104.78/104.50/103.85/103/102.50/10.65/101/100.

Indicator Trends

 CCI (50)- Bullish

ADX (14)-  Bullish

Trading Strategy Recommendation

It is good to buy on dips around 107.80 with a stop-loss at 106.84 and a target price of 110.