CAD/JPY Soars 0.7% on Fed Rate Hike, Eyes ¥112.82 Resistance
The Federal Reserve's decision to raise its federal funds target range by 25 basis points has had a significant impact on the Canadian Dollar (CAD) against the Japanese Yen (JPY), with CAD/JPY trading at ¥112.26, gaining 0.7% on the day.
Despite the Bank of Japan's expected rate hike to a 31-year high, the Fed's policy shift has taken center stage in intraday moves, boosting the appeal of higher-yielding currencies like the CAD.
The pair remains above its short- and medium-term moving averages, indicating bullish momentum. However, overbought signals have emerged, suggesting potential consolidation or a short-term exhaustion of buying power.
The immediate technical support is at ¥111.76, while the key resistance level to watch is ¥112.82. A decisive break above this level could pave the way for further gains.