FxWirePro- CADJPY Trade Idea

CAD/JPY pared some of its gains on the weak Canadian dollar. It hit a high of 110.46 and is currently trading around 110.14.

The labor market in Canada seems pretty positive with the data that came out on January 10, 2025, based on December's employment statistics. In December 2024, Canada added 91,000 jobs compared with a projected number of 25,000. Such healthy growth in jobs implies a healthy labor market. Meanwhile, the unemployment rate eased marginally from 6.8% in November to 6.7% in December. On the whole, the findings point toward a good trend for Canada's employment scenario.

Technical Analysis

CAD/JPY is currently trading above the 34- and 55-EMA on the 4-hour chart. The immediate resistance is at 110.50; a breach above this level could shift targets to 111, 111.56, or 112. On the lower side, near-term support is at 109.45, and a break below this support could lead to declines toward 108.70, 108, or even 107.

Indicator Trends

 CCI (50)- bearish

ADX (14)- Bearish. Overall, the indicators reveal a bearish trend.

Trading Strategy Recommendation

It is advisable to sell on rallies around 109.75-80, with a stop-loss set around 110.50 and a target price of 108.