The CAD to JPY exchange rate is currently range-bound with potential for fluctuation.
The Canadian dollar has faced pressure due to persistent factory downturns, as indicated by a manufacturing PMI in contraction and weaker external drivers. In contrast, CAD received some support from a stronger-than-expected jobs report, showing a significant drop in unemployment. However, the influence of lower oil prices and a firmer USD continues to weigh.
The Japanese yen remains under pressure as U.S. yields rise, keeping USD/JPY elevated. Although the Bank of Japan recently raised interest rates to tackle high inflation, traders expect any further hikes to be slow.
The expected trading range for CADJPY suggests fluctuations around current levels in the near term, influenced by broader economic indicators. Upside risks could stem from stronger commodity prices, while a sustained rise in U.S. yields presents a downside risk for the yen.
Overall, close attention to both U.S. economic conditions and resource price movements will be crucial for future CAD to JPY exchange rate trends.