The Canadian Dollar is trading at 84.27 against the Japanese Yen this morning, up 0.079% with a YTD return of 3.70%. The currency pair had an open rate of 83.61, similar to their previous close at 83.6140. CAD/JPY is anticipated to fluctuate between 82.51 and 83.29 throughout the day, their 52-week range is forecasted to move between 73.81 and 84.29.
After dropping to the 75.00 range at the beginning of the pandemic, the CAD/JPY exchange rate has recovered but in a bullish fashion over the last year. The currency pair was fluctuating between the 78.00 and 82.00 support levels until January but steady growth has been maintained over the previous weeks.
Daily FX reported, “CAD/JPY rates have cleared multi-year resistance” and the recent gains in commodities as well which is helping the Canadian Dollar compared to a broad basket of currencies.
Now back to the 84.00 level, traders that have invested in CAD/JPY are hoping a continued rally in oil prices will further bolster the loonie as it regains the strength that was last seen pre-pandemic in February 2020.
Canada’s energy markets have also been experiencing a surge due to the climate disaster in Texas; “energy accounts for approximately 11% of Canadian GDP, so there has been the typical cross-asset flow of funds into the Canadian Dollar as a proxy for rising oil prices.”
Along with oil and energy growth, there have been improvements in distribution rates of COVID-19 vaccinations across North America leading analysts to believe that “it’s now possible that market participants are no longer considering this an impediment or at least a relative burden.”
By Surina Nath