CADJPY was unchanged for the day after the release of Canadian employment numbers. The numbers showed a lower than expected jobs print and a higher unemployment rate.
Traders were looking for a gain of 100k jobs for the Canadian economy after 378k last month but they only got 83.6k. Adding to the gloom was a rise in the unemployment rate to 8.9% from 8.8%.
The dollar was helped later by the release of Ivey PMI manufacturing numbers, which showed a stronger 54.5 reading after traders were expecting a drop to 51.5. The numbers helped to offset the unemployment numbers for now but we may yet see the Bank of Canada trimming interest rates after staying on hold at 0.25% recently, while most developed countries are near zero now.
There are no big data releases for the Canadian or Japanese economy next week and it’s more likely that the near-term driver of the pair will be oil. Crude pulled back from an election week rally but this could change if the election picture changes over the weekend. The CADJPY has long been an oil trade as Canada is a major exporter, while Japan imports 99% of its oil needs.
CADJPY Technical Outlook
CADJPY broke lower from the uptrend channel but the price bounced at the 78.00 support level. The pair is now moving higher with resistance at the 50-day moving average and the channel line around 80.00. A close above there could see CADJPY target the June high near 82.00. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.