The Trump administration decided to delay tariffs on Mexico and Canada for one month. This gave investors some relief, and the CAD/JPY rate rose to 107.77 in early Tokyo trading.
Later, some investors sold to take profits, pushing the rate down to 106.78. However, in the New York market, CAD/JPY climbed again to 108.01 as investors bought back Canadian dollars.
Even though the tariffs were delayed, people still worry about future trade issues. Because of this, the rise in CAD/JPY may be limited.
If Canada fully accepts U.S. demands, it could be bad for Canada’s economy, making the Canadian dollar weaker.
Before the tariff concerns, CAD/JPY was near 110.00. This level is now seen as strong resistance, as it includes key technical indicators like the 200-day moving average and Bollinger Band upper limit.
CAD/JPY Expected Price Range: 108.30 – 107.00
Note: This information does not guarantee profit. Please make your own decisions when trading.