Listen to the latest market mood for the CADJPY pair:

Weak CAD
The CAD has been weak on the dire outlook for oil. Falling demand, oversupply, and a Saudi price war have all weakened oil prices by around 45% this month. Canada with its heavy export oil economy will find CAD continuing to struggle. The Bank of Canada cut interest rates last week from 0.75% to 0.25%. They also spoke about the possibility of negative interest rates last week which invites further CAD sellers.

Strong JPY
Once the market returns to a risk-off footing, which with the rapid spread of COVID-19 it should do soon, we can expect further JPY strength.

  • Keep an eye on the latest coronavirus updates to measure risk.
  • Expect sellers on pullbacks on CADJPY.
  • We expect this outlook to play out over the next 2 weeks.
  • The main risk to this set up remains to be any positive coronavirus news which would send the market back into a risk-on mood and JPY buyers will disappear.

HYCM Lab is a financial analysis source that provides regular insights on how global news affects the markets including forex, commodities, stocks, indices, and cryptocurrencies*. Run by the HYCM team, it equips traders with everything needed to make informed trading decisions.