CAD/JPY Explodes to 115.17 – Weak Jobs Data Ignites Bull Run Toward 118?

CAD/JPY gained sharply after dismal Canadian jobs data. It hits an intraday high of 115.17 and is currently trading around 115.15.

Statistics Canada's January 2026 employment report, released February 6, showed an unexpected net job loss of 25,000 (-0.1%), missing estimates for a +7,000 gain and marking the first drop since August 2025. Although the headline flaw driven by steep declines in part-time jobs (-70,000), core-aged women (-27,000), Ontario (-67,000), and sectors like manufacturing and education drove the unemployment rate unexpectedly dropping 0.3 points to 6.5% (lowest since September 2024), labor force participation fell to 65.0% among 94,000 less persons seeking job. While private-sector shedding 52,000 jobs reduces near-term pressure for Bank of Canada rate cuts, year-over--year employment nevertheless increased 0.6% (+134,000), average hourly salaries grew 3.3% to $37.17, and markets saw limited USD/CAD volatility.

Technical Analysis

CAD/JPY is currently trading above the 34- and 55-EMA  and below 200 EMA and 365 EMA on the 4-hour chart. The immediate resistance is at 115.25; a breach above that level could shift targets to 116/116.91/118. On the lower side, near-term support is at 114.59,and a break below this support could lead to declines toward 114/113.30/112.60/112/111.69/ 111/110.50/110/109.50/109.

Indicator Trends

 CCI (50)- Bullish

ADX (14)-  Bullish

Trading Strategy Recommendation

It is good to buy on dips around 114.58-60 with a stop-loss at 113.30 for a target price of 117/118.