The Canadian dollar dropped below 87.00 against the Japanese yen JPY) on September 15, 2021. (JPY) The Canadian dollar has been fluctuating in price since the beginning of this month.
Previously, it ran in a smooth forward path toward the higher edge.
Statistics Canada plans to publish the consumer price index (CPI) today, which according to analysts, registered a reading of 0.1% compared to the prior month’s reading of 0.6%.
The CPI is a price movement when a representative shopping basket of products and services measures retail prices. Inflation is weighing down the buying power of the loonie. Generally speaking, the decreasing rate anticipates the bearish trend for the pair CAD/JPY currency pair.
Currently, the price of the CAD/JPY is 86.72. There is a trendline resistance at 86.84 (as shown in the figure below) to discourage the momentum of the CAD/JPY pair.
Besides this, there is one good news from the Japanese Merchandise Trade Balance which, according to the economist’s view, it might remain ¥-47.7B in August compared to the month before data of ¥441B.
A positive number indicates a trade surplus, while a negative number indicates a trade deficit. Japan is reliant on exports. A low reading is pessimistic for the JPY while bullish for the CAD/JPY pair.
Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy for the short to medium term.