Last week, the Bank of Canada (BOC) decided to keep its interest rate at 2.75%. Some people expected a rate cut, so after the announcement, the Canadian dollar was bought.
The central bank said it wants to wait and see how the new tariffs affect the economy. This is the first time in eight meetings that they did not cut the rate.
BOC Governor Macklem said, “If the data clearly points in one direction, we are ready to act strongly.”
However, many people believe the interest rate will stay the same until the bank understands how the tariffs affect the economy and inflation.
In March, the CAD/JPY rate fell to 101.37 yen and then rose to 105.86 yen. In April, the price went down again but did not fall below the previous low of 101.54 yen.
Because of this, it is likely that a “double bottom” pattern has formed (this often suggests a possible rise).
So this week, the Canadian dollar may try to go higher against the yen.
CAD/JPY Forecast Range for This Week: 101.70 yen – 103.90 yen
Note: This information is not a guarantee of profit. Please make your own decisions when trading.