CAD/JPY Flirts With Daily Low Ahead of National Consumer Price index

CAD/JPY went down for the second day after falling from a 24-year high overnight. Fears of a recession and rumours that the government might step in supported the safe-haven JPY. The fact that the Fed and the Bank of Japan have different policies makes it more likely that people will buy on dips.


The markets have been pricing in a move to raise rates by another 75 basis points (bps) at the next FOMC meeting in July. Fed Chair Jerome Powell’s comments on Wednesday, in which he said that the ongoing rate hikes will be appropriate, backed up the bets. The Bank of Japan, on the other hand, still plans to keep interest rates very low.

It’s important to remember that the Bank of Japan (BoJ) decided last week to keep the massive stimulus programme going and vowed to protect the 0.25 percent cap on the 10-year JGB yield in order to support an economy that is still weak.

The Statistics Bureau will also release the National Consumer Price Index of Japan. Economists predict that the CPI will be 2.9 percent in May, compared to 2.5 percent the month before.


The Tokyo CPI tracked how the retail prices of a wide range of goods and services changed over time. Economists use the CPI to track changes in how people spend their money.

While the positive Consumer Price Index of Canada today makes it more likely that the economy will grow and keep moving forward.


Given how volatile the pair’s prices have been lately, it may be a good idea to trade the CAD/JPY over the long term. Those who want to take advantage of newly available short positions can do so, as there are several chances that CADJPY will go up.

Copyright © 2022. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.