FxWirePro- CADJPY Trade Idea

CAD/JPY showed a minor pullback after upbeat Canadian retail sales. It hit a low of 105.36 and is currently trading around 106.13.

Canada's retail sector recorded strong performance in December 2024, with the key indicators registering huge increases. Retail sales, excluding motor vehicles, increased by 2.7%, outpacing expectations. Core retail sales also registered a good increase of 2.5%. Canadian retailers achieved a year-long 2024 of $803.1 billion in sales, an increase of 1.3% compared to 2023. Although relatively flat in November, the December performance points to positive industry momentum

Technical Analysis

CAD/JPY is currently trading below the 34- and 55-EMA on the 4-hour chart. The immediate resistance is at 106.65; a breach above this level could shift targets to 107/107.40/108/108.35/109.30/110. On the lower side, near-term support is at 105.90, and a break below this support could lead to declines toward 105.35/104.80/104.

Indicator Trends

 CCI (50)- Bearish

ADX (14)- Neutral

Trading Strategy Recommendation

It is good to sell on rallies around  107.68-70 with a stop-loss set around 108.35 and a target price of 105.