The Canadian dollar increased its value against the Japanese yen (JPY) to more than 90.00 today, putting it on the road to success.
Several updates will further push the price of CAD/JPY, and the most significant is the Canadian consumer price index (CPI).
Statistics Canada is all set to release the figure of the CPI on June 16, 2021 (Wednesday). According to economists’ predictions, CPI might remain 3.2% in May compared to the month before data of 3.4%.
The CPI is an indicator of price movements when a representative shopping basket of products and services measures retail prices. Inflation is weighing down the buying power of the loonie. Generally speaking, the decreasing rate anticipates the bearish trend for the CAD/JPY currency pair.
As of this writing, the CAD/JPY pair consolidates around 90.02. On the downside, the CAD/JPY currency pair might find some support near the given below price level, which might keep the pair to sustain at the given level and protect it from dropping.
Another piece of information is that the Statistics Bureau will release the Japanese National CPI ex-Fresh Food on June 18, 2021, which might further push the CADJPY price.
According to FXStreet.com, it might register a figure of -0.2% in May compared to the month before data of 0.1%.
The national CPI measures price changes obtained from retail prices for a sample shopping basket of goods and services excluding fresh food.
Given the pair’s recent price action, buying the CAD/JPY for about 88.79 could be a better short-term choice.