Pi Network Supply Pressure
Pi Network is experiencing a continuous decline, nearing a support trendline. This trend aligns with increased supply pressure, as Centralized Exchanges report higher inflows.
Several broker-related considerations for 2025 are highlighted. These include low spreads, high leverage, Islamic accounts, and the use of the MT4 platform, catering to diverse trading preferences globally.
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Japan Economic Expansion Strategy
Given the recent rise in Japan’s Leading Economic Index to 110, we see this as a clear sign of underlying economic strength heading into the new year. This data suggests continued momentum for Japanese equities. We should consider positioning ourselves by buying Nikkei 225 futures or call options to capitalize on this expected expansion in the coming weeks.
This report builds on the positive sentiment we’ve observed since the Bank of Japan finally ended its negative interest rate policy back in early 2024. A stronger economy may lead to further policy normalization, which could also strengthen the yen. Therefore, shorting USD/JPY through futures contracts presents another viable strategy to trade this Japanese economic resilience.
Conversely, the forecast for Canada’s upcoming labour report points to economic weakness, with unemployment expected to hit 7%. This could pressure the Bank of Canada to adopt a more dovish stance. We are looking at this as an opportunity to buy USD/CAD call options or futures, anticipating a weakening Canadian dollar.
This weak jobs forecast aligns with the soft Q3 2025 GDP figures, which showed growth of only 0.4%. We saw a similar dynamic in 2023 when slowing growth prompted a shift in central bank rhetoric. A poor jobs print on Friday could be the catalyst that accelerates a decline in the Canadian dollar.
On the cryptocurrency front, on-chain data for Pi Network reveals a bearish setup with a surge in tokens moving to centralized exchanges. This typically signals an intent to sell, creating downward price pressure. The asset is now approaching a critical support trendline, which we will be watching closely.
For traders with exposure to this market, this increase in supply pressure suggests it may be prudent to initiate short positions using perpetual futures. A definitive break below the mentioned support level would serve as a confirmation signal for a deeper correction.
