CADJPY
CADJPY is one of the most favorite trading tools of traders who actively know how to apply fundamental analysis .
Due to its peculiarity, CADJPY is considered the most poorly predictable tool for traders who use technical analysis.
Sudden jumps of 150-250 points per day are considered the norm for this instrument, since it reacts strongly to economic indicators, foreign political activities of states, as well as the release of key news from strategic partner states.
CADJPY belongs to exotic currency pairs, since due to the high commission when trading this instrument, traders who trade short positions, as well as various kinds of scalpers and pipsers, are simply eliminated.
On average, the spread ranges from 7 to 15 points for various brokers, so if you decide to work with CADJPY, I recommend that you more carefully select the company with which you will trade in the future.
JPY - Japanese yen is the national currency of Japan. Japanese yen is considered one of the most popular currencies of Asia, and Japan itself is the largest exporter of computer and household appliances. Do not forget that Japan is the world's largest manufacturer of small-scale cars and hybrids, which, due to the rise in price of gasoline prices, began to pushes large-scale vehicles with high cost from the European and America market.
Therefore, the Japanese yen is sensitive to the news are related to the export of the automotive industry, as well as the rise in price of prices for components. And now, in fact, about some fundamental factors that should be paid attention to:
1. The press conference of the Japanese Bank is one of the strongest news factors that Ien move. This conference discusses the prospects of economic growth, future inflation, as well as data on accounting rates . Japan actively underestimates its course so that its product is competitive, so tracking data on possible changes in interest rates is a key task of the trader.
2. The volume of industrial production of Japan is a strong indicator that also affects the JPY course, since as we have already mentioned above, the economy of Japan is strongly tied to industry.
3. GDP data.
Do not forget that JPY reacts to a change in the US dollar, since both countries have close economic relations.
CAD is the national currency of Canada. Canada is one of the largest oil exporters, and its own economy does not use it so much. The key partner in the sale of oil is the USA, so CAD is very dependent on world prices for oil and solvency of the United States, and therefore on the dollar.
If the price of oil is growing, the cost of CAD is also growing, which means the schedule of the CADJPY currency pair is growing. The drop in oil prices always negatively affects CAD, so with a drop in black gold prices, the national currency weakens and the Cadjpy graph strives down. In addition to oil prices, when analyzing the Canadian dollar, it is worth paying attention to the following fundamental indicators:
1. The internal gross product of Canada is an important indicator of the development of the economy, which is updated once a month. It is worth monitoring both GDP changes, since they have a very strong impact on the movement of the course.
2. Consumer price index shows us to change inflation in Canada.
3. Employment data and unemployment.
In conclusion, I want to note that the Cadjpy currency pair is very much influenced by the dollar, as well as prices for black gold and energy. Do not forget that for CADJPY it is considered normal strong price bursts, so I do not recommend this pair to beginners who own only technical analysis .