Today we updated the CADJPY with the status of positive news, Candian Dollar inched Higher itself against the Japanese Yen, Well, this is the recovery stage of the CADJPY, as it tried continuously to get back its which it lost in the start of the year, and this is good that today it marked it position at the price of 82.81, it improved its price from the 81.76, the lowest price where it reached on February 03, 2020.
Since there are a number of factors that work side by side to lift the CADJPY price, we highlighted the few below:
Canada has received the good news from The Housing Starts from the Canadian Mortgage and Housing Corporation that reveals how many new single-family homes or buildings were constructed, which grew this month from 195.9 K to 213.2 K. This demonstrates the power of the Canadian housing sector and, due to the sensitivity of Housing Starts to changes in the economic cycle, can be used as the entire economy. For the CAD, a high reading is viewed as positive (or bullish), whereas a low reading is viewed as negative (or bearish).
Then another is from employment change by Statistics Canada, significantly increased from -2.8 K to the 345K. This is a measure of the number of individuals who live in Canada. An increase in this measure usually has positive effects on consumer spending that increases economic growth. Consequently, a high reading is viewed as favorable or bullish for the CAD, whereas a low reading is considered negative.
We noticed the number of support levels on the graph above that soon pushed it toward the optimum level. But we also have the resistance levels that are ahead of the price that worries the CADJPY as they could bring it back down.
Conditions for CADJPY are getting undoubtedly better from the past days and now it illuminates the expectation that it will soon regain its advantageous position.