CAD/JPY Live Charts

The CAD/JPY pair isn’t necessarily a major pair, but it should not be dismissed so easily. This is because both the Canadian dollar and the Japanese yen are major currencies, and as a result this pair is quite a bit more liquid than people would anticipate. On top of that, there are several dynamics to this pair that make it an interesting one to trade.

The first thing you need to think about is the fact that Canada is a major exporter of petroleum. Because of this, the Canadian dollar is a proxy for crude oil, and therefore will typically increase in value as oil does. On the other side the Pacific, you have Japan which has to import 100% of its crude oil. So because of this, this pair suddenly becomes a bit of a “supercharged” proxy for the oil markets. That being the case, a lot of traders like using this pair. While the USD/CAD pair is considered to be a proxy for the crude oil markets, the Americans to produce some of their own oil. Because of this, the market is much quicker to move.

Live Chart on the CAD/JPY:

Average Spread of the CAD/JPY

The spread in this pair is reasonable, as it will typically be around four pips. It is liquid enough to trade without too many issues, but it also has certain times of the day that it tends to move quicker than others. The Canadian dollar tends to move more during the North American trading session, as the largest amount of liquidity in that currency happens during its business hours. However, in times where the oil markets are in focus, this pair can move reasonably well during the Asian session.

Which Major News Announcements Impact the CAD/JPY?

When it comes to announcements, there are several that can move this particular pair. Interest-rate decisions out of both Ottawa and Tokyo of course can move this pair. On top of that, employment numbers out of Canada can move this pair. While the Japanese employment numbers can, they typically are ignored under most conditions. The Tankan survey out of Japan can move the Japanese yen side of this equation, and of course GDP out of both countries can have a significant influence. However, without a doubt the largest economic announcement will be crude oil related announcements. For example, the Crude Oil Inventories number out of the United States shows demand for oil out of the world’s largest consumer. As inventories dropped, it shows that more oil is being used, and that can have a knock on effect in this pair.

Again, while this is not a major pair you should not shy away from it. More and more brokers are offering this pair, as it becomes more relevant in the Forex world. The fact that the Americans are drilling more of their own oil makes this a more relevant pair as far as crude oil is concerned, and with that it will more than likely become the de facto crude oil play in the Forex world going forward. As the dynamic of the USD/CAD pair changes, traders will look for a more pure were play and this is probably the easiest way to do so when it comes to oil and currencies.

While this is typically not a pair that new traders get involved in, the truth is that they are missing a decent opportunity. This is an excellent pair to swing trade, as it does tend to trend for long term moves over the longer term charts. This allows traders to learn the art of hanging onto a trade as letting the market to do their work for them is one of the best ways to make money. As oil markets tend to trend, so does this pair and therefore it is an excellent marketplace to learn about correlations as well.

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