While the Euro has strengthened dramatically against the Japanese yen, showing a giant price hike from 116.8 JPY up to 121 JPY based on the results from the first round of elections in France. Meanwhile, the yen is losing positions against most currencies because it is under pressure, mainly due to the tense situation on the Korean Peninsula. The Canadian dollar failed to take the initiative and the CAD/JPY rates continue to be in the frames of a downward trend, though the pair strengthened a bit yesterday.
At the moment the Canadian dollar is under the pressure of many factors, first and foremost because of the drop in oil prices. The price for the black gold fell again below the psychological point $50. Forecasts here aren't good for the CAD because the United States continues to increase oil production, and President Trump is supporting it and trying to make conditions for energy companies easier for developing oil extraction on the continental territory in the U.S. and on the shelf. Furthermore, the Canadian dollar is decreasing in value because Trump continues to demand a revision of the trade relations with his neighbors and the disagreements between Canada and the United States become more and more serious.
This week is full of important events and the market will get a lot of macroeconomic statistics which will affect the rates of the CAD/JPY. Today the market awaits important information about the volume of retail sales in Canada and a conference of the President of the United States. In addition, tomorrow we'll get a report by the Bank of Japan about perspectives for the Japanese economy, and on Friday we expect data about Canada's GDP, consumer price indices and the volume of production in Japan. Therefore, this week volatility may increase. We can probably expect a further strengthening of the JPY in the frames of the current downtrend. The Stochastics and MACD oscillators unanimously indicate a good moment to open the deals to SELL after the price correction which occurred yesterday.
