The Canadian Dollar is trading at 80.23 against the Japanese Yen this morning, down -0.14%.
Their open rate sits at 80.34 with a previous close at the same level. The pair’s daily range is between 80.18 and 80.48, the 52-week range will settle between 73.81 and 84.74 with a YTD return of -3.78%.
CAD/JPY is slowly recovering from their drop at the end of October where the exchange rate was at a low of 78.30. The pair has seen continuous fluctuations since the market drop at the beginning of March but there has been some success as the currencies exchange rate hasn’t dipped below the 78.0 support level.
Since the announcement of COVID-19 vaccinations and new lockdown measures, there has been a subtle spike in CAD/JPY as traders are interested to see how the relationship with Asia will impact exchange rates. “However, markets have largely turned a blind eye with not only the recent optimism but also on the basis that major central banks with keep purse strings loose for the foreseeable future” according to DailyFX.
Oil prices and Canadian energy exports will also set the tone for CAD/JPY as December approaches, the pair climbed 45 pips due to Yen selling pressure. “CAD/JPY might continue to advance with crude oil ripping higher largely on the back of encouraging COVID vaccine results” but there are notable near-side risks that could undermine the recent gains in crude oil which could put downward pressure on CAD if materialized.
If CAD/JPY is able to stay above the 78.0 support level, those investing in the pair should be able to see steady bearish trends moving into 2021.
By Surina Nath