CAD/JPY (Canadian Dollar / Japanese Yen)

📜 History

CAD/JPY has no single creation date. It exists because both currencies float freely against the US dollar and therefore against each other. Canada let the Canadian dollar float in 1970, after years of fixed rates. Japan kept the yen at 360 per US dollar from 1949 until the Bretton Woods system broke down in 1971, and moved to floating rates in 1973. The pair became widely traded as electronic dealing grew in the 1980s and 1990s. The 1985 Plaza Accord pushed the yen sharply higher, and the 1997 Asian financial crisis and 2008 global financial crisis both saw the yen strengthen as carry trades unwound. The 2014-2016 oil price collapse hit the Canadian dollar hard and drove CAD/JPY lower.

⚙️ What moves the price

• →Bank of Japan policy and the interest rate gap with Canada
• →Bank of Canada rate decisions and guidance
• →Crude oil prices, since the Canadian dollar is a petrocurrency
• →Risk sentiment: the yen tends to rise in sell-offs, while CAD tends to fall
• →Japanese yen intervention, as seen in Japan's 2022 actions

Character

• •Moderate to high volatility, often above majors like EUR/USD
• •Sharp trends during risk-off episodes
• •Often moves with oil prices and global equity markets
• •Can gap or spike on sudden yen rallies

When to trade

• ✅London-New York overlap (12:00-17:00 UTC), when Canadian data and oil inventory reports are released
• ✅Tokyo session (00:00-06:00 UTC) around Japanese data and BoJ news
• ✅Days around Bank of Canada and Bank of Japan policy meetings, with a clear plan

When not to trade

• ⛔Minutes before and after BoJ or BoC decisions, when spreads widen
• ⛔Thin liquidity on late Fridays and during Asian or Canadian holidays
• ⛔High leverage ahead of possible yen intervention or risk-off shocks
• ⛔Trading against a strong trend without a stop-loss

Our verified setups

Latest closed signals

• SELL · H1 · SL30/10−$106
• BUY · H1 · TP229/10+$193
• SELL · H1 · SL28/10−$110
• SELL · H1 · SL28/10−$110
• SELL · H1 · SL27/10−$111

📊 Weekly report

Simulation: $10,000 deposit, $100 risk per trade. Pips — price movement; $ — result at fixed risk.