CAD/JPY showed a minor pullback after Canadian CPI data. It hit an intraday low of 102.99 and is currently trading around 103.74.
Driven by a 4.8% recovery in motor vehicle and parts dealers, Canadian retail sales rose by 0.8% month-on-month in March 2025, somewhat exceeding predictions; core retail sales (excluding cars and gas stations) increased by a more moderate 0.2%. In six of nine retail subsectors, sales rose with significant increases in clothing, furniture, and construction supplies; a provisional projection predicts a further 0.5% growth in retail sales for April 2025, indicating a continuation of the growth trend despite financial concerns.
Technical Analysis
CAD/JPY is currently trading below the 34- and 55-EMA on the 4-hour chart. The immediate resistance is at 104; a breach above this level could shift targets to 104.50/105/105.51/106/107/108.25. On the lower side, near-term support is at 103 and a break below this support could lead to declines toward 102.50/10.65/101/100.
Indicator Trends
CCI (50)- Bearish
ADX (14)- Bearish
Trading Strategy Recommendation
It is good to sell on rallies around 104 with a stop-loss at 105 and a target price of 100.
