Today, the Canadian dollar (CAD) was stronger against the Japanese yen (JPY) because of the retail sales data that came out a few days ago. This data showed that retail sales rose by 1.6 per cent, which was more than what economists expected.

Retail sales numbers were released by Statistics Canada every month. These numbers show how many products were sold by retailers, based on a sample of stores of all types and sizes. Retail sales are one of the tools used to figure out how well things are going. This leads to lower readings that show a weak economy and a devalued dollar.

It looks like the Japanese unemployment rate is going to go up even more soon. This could make the Canadian dollar even closer to its ideal level.

On Friday, the Japan Statistics Bureau will show how many people are unemployed (December 27, 2021).

The unemployment rate in Japan is a way to tell how many people are out of work. A high percentage means that the Japanese labour market is weak, which has an effect on the intensity and speed of the Japanese economy. As a result, a low reading can be good for the JPY and bad for the US dollar.

Conclusion

If you want to make money quickly, you should sell the pair. But if you want to make money long-term, you should keep it because the pair usually leads the other one forward.