2026-10-23 Readings lean neutral
CAD/JPY ranges near 112.027 as traders await central bank decisions
CAD/JPY is trading around 112.027, showing a slight decline of 0.14 percent over the last 24 hours. The market is currently ranging on both the short and medium-term charts. The Japanese yen is slightly outperforming the Canadian dollar in recent trading.
Trend and momentum
The 1-hour and 4-hour market structures are both ranging. Momentum indicators are neutral, with the 1-hour RSI at 48.48 and the 4-hour RSI at 47.13. Price action remains inside the 1-hour Bollinger Bands without any squeeze, and the pair has already consumed 104 percent of its average daily range.
Key levels
Key levels to watch include yesterday's high at 112.695 and low at 111.646. Last week's high sits at 111.980, which is near the current price, while last week's low is 110.678. The recent 4-hour range spans from 111.490 to 112.696. A break above the 4-hour high could signal renewed bullish momentum, while a drop below the 4-hour low might open the door for further downside.
News and events this week
The Bank of Canada will announce its interest rate decision on October 28, with markets pricing in a high probability of a rate hike. Meanwhile, the Bank of Japan is scheduled to release its monetary policy statement and outlook report on October 30. BoJ Governor Ueda recently noted that the central bank will continue to raise rates if inflation aligns with their target.
What would push it higher
If the Bank of Canada delivers a hawkish rate decision, the Canadian dollar could attract buyers. A sustained break above yesterday's high would confirm a shift to upward momentum.
What would push it lower
If the Bank of Japan signals an imminent rate hike, the yen could strengthen significantly. A drop below the recent 4-hour low would indicate a bearish shift in market structure.
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