On Wednesday (April 07, 2021), the Canadian dollar (CAD) fell against the Japanese yen (JPY), bringing the CAD/JPY currency pair price below 88.00 ahead of the release of Canadian Unemployment data.
Statistics Canada anticipates releasing numbers for the Canadian unemployment rate on April 09, 2021. According to the consensus of FXStreet.com economists, the unemployment data might register a reading of 8% in March, as compared to the 8.2%, in the month before.
The unemployment data reflects the number of individuals having no jobs in Canada. The figures are presented as a percentage of the total labor force (civilians). Higher reading reflects a lack of expansion in the Canadian labor market. Generally speaking, a high unemployment reading weakens the Canadian dollar and suggests a bearish trend for the CAD/JPY pair and vice versa.
As of this writing, the CAD/JPY pair floats around 87.00. If the price continues to drop, the pair might find some sustainability through these support levels.
Considering the price movement of the pair over the past few days, it may be a better option in the short term if the pair was bought at around 87.56. Due to the volatile nature of the market, however, prices may change and lead to different outcomes.