Selling continued this week due to concerns over Trump’s tariffs, but there is a high chance of a rebound soon.
Canada’s January CPI rose from 1.8% to 1.9% as expected, leading to a brief rise in CAD/JPY, but it later fell again. Yesterday, expectations of an early Bank of Japan rate hike led to more yen buying, causing CAD/JPY to drop further and stop at 105.32 yen, the lower limit of the Bollinger Bands.
Today, Canada’s February retail sales are expected to rise sharply compared to the previous month. If the results meet expectations, short covering may happen before the weekend, pushing prices up.
CAD/JPY Forecast Range: 106.00 – 105.00 yen
Note: this information does not guarantee any profits. Make your own decisions when trading.