The CAD/JPY currency pair comes to the stage after the fall of two days. Now, with the green sign today, its price is over 81.00.

Behind the recent price movement, multiple updates are working, but the recent increase could come due to Canada’s upcoming updates.

The Bank of Canada (BoC) is publishing this year’s Consumer Price Index (CPI) this week, which according to analysts, is forecast to rise 1.2%, compared to the prior year’s reading of 1.5%.

Fruit, vegetables, gasoline, fuel oil, natural gas, mortgage interest, intercity transportation, and tobacco products are not in the ‘core’ CPI. The key indicator of inflation in Canada is the volatile Core 8. Generally speaking, a high reading expects the BoC to have a hawkish attitude and is positive for the CAD (or bullish).

And the Canadian central bank might leave its benchmark interest rate unchanged at 0.25%, according to the consensus of economists. Generally speaking, If the BoC is hawkish about the inflationary outlook of the country. It is better for the Canadian dollar. 

Currently, the price of the CAD/JPY is at 81.50, with the immediate horizontal support level at 81.17, which provides the pair the potential to lift and also sustain it at the given level.

Conclusion

The CAD/JPY pair reflects a nice picture for the future, thus continuously increasing value day after day. The buying strategy for short to medium traders will work best here.