Today, the Canadian dollar (CAD) decreases with an amount of 86.65 dollars against the Japanese yen (JPY). The Canadian currency (CAD) had recovered its value against the yen before this decline.
It is happening before the international merchandise data is released. The loonie had recovered its value against the yen before this decline.
The upcoming release which falls its impact on the price of CADJPY is the International Merchandise Trade.
Statistics of Canada plans to publish the International Merchandise Trade on August 05, 2021 (Thursday). According to the FxStreet.com report, It might remain $-0.8 B in June.
The International Merchandise Trade is the difference in the value (in Canadian dollar terms) of its imports and exports of Canadian goods, excluding intangibles such as services. If there is consistent demand for Canadian exports, the trade balance will improve, which will be better for the CAD and vice versa.
And, there are fewer risks of a CAD/JPY plunge since, as seen in the below graph, there are resistances in front of the pair’s price that may act as a barrier to its price moving forward.
Long-term investors will be pleased with their investment because the pair has the potential to rise.