[CAD/JPY] Oil Price Decline Likely Temporary

In the Tokyo market, CAD/JPY dropped to 110.20 yen but rebounded to 110.80 yen in the European market. However, it fell again during the New York session. The decline was driven by a significant drop in oil prices, as there were expectations of a temporary ceasefire agreement between Lebanon and Israel. This caused CAD/JPY to fall to 109.92 yen, as Canada is a major oil-producing country.

Later, news that the ceasefire had not yet been finalized and a rise in all three major U.S. stock indices helped CAD/JPY recover to around 114 yen.

Since October, CAD/JPY has been building strong support at 109 yen and gradually climbing. While resistance remains near the 200-day moving average at 111 yen and the upper Bollinger Band at 111.50 yen, the pair continues its slow upward trend.

CAD/JPY Expected Range: 110.80 yen–109.90 yen

Note: The above information does not guarantee profits. Please make your own decisions when trading.