Canadian Dollar (CAD) Heads Up Post Interest Rate Release Against the Japanese Yen

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During the last week, the Canadian Dollar (CAD) has begun to improve against the Japanese Yen ( JPY). The pair is trading around 81.63 and is expected to continue to rise amid the release of interest rates.

The Bank of Canada announces the interest rate decision, the interest rate protracts the economy’s inflationary outlook, the higher interest rate is the bullish economy’s indicator.

The current monetary policy in July BOC is willing to remain unchanged. New Governor Tiff Macklem has repeatedly pledged to produce stable inflation. So these new features help to reinforce the Candian dollar against the Japanese yen.

Although if we’re talking about the success of the CADJPY then it’s not as good because it can’t keep its price movement steady.

It needs a strong push up whether in the form of support levels or the upcoming news that lift it. Here in the figure attached few support levels want to raise it.

At first, there is trendline support at 78.71, immediately after it there is another support of the Fib level at 78.02 and then at 76.77, the major horizontal level supported it.

CADJPY

On the other hand, there has been upcoming news about retail sales that are projected to increase an index of up to 9 percent as compared to the last month. hence there are chances that CADJPY might not remain bearish.

Conclusion

Trading CADJPY can be a good idea over a short period. However, the chances are better for traders planning to trade the pair for a long term position.

 

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