How can You trade the CAD/JPY?
There are 3 major ways in which you can trade the CAD/JPY:
What factors influence the CAD/JPY?
This currency pair is influenced both by Canada and Japan’s trading relationship and financial reports, balance of payments, interest rates and more. While Japan exports manufactured goods to its Aussie counterpart, the latter supplies it with natural resources.
Tracking each country’s financial and political events is a prudent approach to trading the short term fluctuations in these currencies’ market value.
What to consider when trading the CAD/JPY?
Though you may find yourself tempted to focus solely on national events within Canada and Japan while trading this pair, it may not be in your best interest. Other market factors can impact the performance of the Canadian dollar and Japanese yen. Both countries also heavily rely on their respective relationships with the United States, so it would be best to follow its reports, as well.
Additionally, when trading the yen, you will need to consider the time difference if you live in a different time zone.
Did you know?
The Canadian dollar is referred to as the Loonie due to the common loon (a bird) appearing on the one -dollar coin.
Accounting for about 2% of all global reserves, the Canadian dollar is the fifth most held reserve currency to date after the US dollar, euro, great British pound, and the Japanese yen. Canada’s strong government, economic soundness, and stable politics are the factors that make this currency attractive to central banks worldwide.
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