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.
The Japanese yen is considered one of the most popular currencies in 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 cars and hybrids, which, due to rising gasoline prices, have quietly begun to push large, high-cost cars out of the European and American markets. Therefore, the Japanese yen is sensitive to news related to the export of the automotive industry, as well as rising prices for components.
And now about some fundamental factors that you should pay attention to: 1. The Bank of Japan press conference is one of the strongest news factors that move the yen. This conference discusses prospects for economic growth, future inflation, as well as data on discount rates .
Japan actively lowers its exchange rate in order for its goods to be competitive, so tracking data on possible changes in interest rates is a key task for a trader. 2. The volume of industrial production in Japan is a strong indicator that also affects the JPY exchange rate, since, as we mentioned above, the Japanese economy is heavily dependent on industry.
3. GDP data.
Do not forget that the JPY reacts to changes in the US Dollar exchange rate, since both countries have close economic relations.
CAD is the national currency of Canada.
Canada is one of the largest exporters of oil, and its own economy does not use much of it. The key partner for oil sales is the United States, so CAD is very dependent on world oil prices and the solvency of the United States, and therefore on the dollar. If the price of oil rises, the cost of CAD also rises, which means the chart of the CADJPY currency pair also grows.
A fall in oil prices always has a negative impact on the CAD, so when the price of black gold falls, the national currency weakens and the CADJPY chart tends downward. In addition to oil prices, when analyzing the Canadian dollar, it is worth paying attention to the following fundamental indicators: 1. Canada's Gross Domestic Product is an important indicator of economic development, which is updated once a month.
It is worth keeping an eye on changes in GDP, since they have a very strong impact on the exchange rate movement. 2. Consumer Price Index - shows us changes in inflation in Canada.
3. Data on employment and unemployment.
In conclusion, I would like 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 strong price surges are considered normal for CADJPY, so I do not recommend this pair to beginners who only know technical analysis .