The Canadian dollar (CAD) has made a successful day against the Japanese yen (JPY) today, following a two-day slide. The CAD/JPY currency pair exchange rate rose by more than 89.00 cents.

This drop follows the announcement of Japan’s Tankan Large Manufacturing Index.

On December 12, 2021, the Bank of Japan (BoJ) released manufacturing index figures. The manufacturing index reading remained at eighteen in the fourth quarter, according to FXStreet.com, with no change from the previous quarter.

The statistics for Japan’s manufacturing index indicate the state of the country’s manufacturing sector. The manufacturing index is highly sensitive to Japan’s economy because the country’s economy is significantly reliant on it. In general, higher-than-expected figures indicate greater export levels, which boosts the Japanese yen and vice versa.

Moreover, the Ministry of Economy, Trade, and Industry plan to release the figure for industrial production on December 14, 2021. Economists predict that it might register a reading of -4.6% in October. The negative figure appreciates the Canadian currency.

Industrial production is a metric that quantifies the output of Japanese companies and mines. Industrial production changes are a key indicator of the manufacturing sector’s health. A high reading indicates bullish sentiment for the JPY, while a low reading indicates the bearish sentiment.

Conclusion

The buying strategy is quite helpful for the traders of the short term, whereas the long-term traders should hold it because the pair may take the turn and lead the pair in a forwarding direction.