After a week of declines, the Canadian dollar (CAD) increases against the Japanese yen (JPY) on Monday. The currency pair currently trading at approximately 88.19 and might continue to rise in the face of rising employment rates.

One of the causes contributing to the present price increase is Canada’s net employment change. It increased by a significant amount to 230,700, beating the economist’s prediction of 195,000.

Statistics Canada’s Employment Change is a measure of the increase in the number of individuals employed in Canada. An increase in this indicator usually has a beneficial impact on consumer spending, which helps to boost economic growth.

The graph below illustrates that there are support rates that reflected the CAD/JPY pair’s success since they worked to boost and sustain it above the indicated amount, providing the best aid for passing the resistance that would occur.

Whereas the Ministry of Economy, Trade, and Industry will release the figure for Industrial Production on July 14, 2021. The FXStreet.com consensus might register a figure of 22% in May while bearing no change compared to the month before data.

Industrial Production is a metric that quantifies the output of Japanese companies and mines. Changes in industrial production are a leading sign of manufacturing sector strength. The JPY is bullish when the reading is high.

Conclusion

Having in mind the pair’s price volatility over the last couple of weeks, swapping the CAD/JPY currency pairfor a long-term position would yield fruitful returns. Those who want to take short positions will certainly seek their luck, too.