CAD to JPY Exchange Rate


Ahh, Japan: home of YKK, the world’s largest clothing zip manufacturer, and approximately 1500 earthquakes every year.

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What influences the CAD/JPY exchange rate?

The Japanese yen enjoys a favourable status as a safe haven currency. While the U.S. dollar is also a safe haven currency any concerns over risk in the U.S., such as during the 2016 campaign and election of Donald Trump, may benefit the JPY exchange rate.
 
The Canadian dollar (CAD) works under a floating exchange rate regime. Therefore, the CAD exchange rate may be determined by supply and demand. Other factors that might influence CAD’s value include commodity prices, interest rates, and inflation rates.1
 
To understand what affects the CAD/JPY exchange rate, it’s important to understand a bit about carry trades. Carry trades are used by professional forex traders to capitalise on the interest rate differential between two currencies and potentially profit from higher interest earnings. Japan has had a negative interest rate for the last two decades, so carry trades provide consistent demand for Japanese yen. Therefore, interest rates can play a role in CAD/JPY exchange rates.
 
The CAD/JPY exchange rate might also be influenced heavily by the price of oil, as Canada is one of the top exporters of oil, while Japan is one of the top importers of oil.2
  

CAD/JPY Snapshot 

“Trade and economic relations between Canada and Japan have been steadily expanding. With a gross domestic product of C$5.1 trillion, Japan is the world's third-largest national economy, one of Canada's most important economic and commercial partners and one of Canada’s largest bilateral foreign direct investment (FDI) partners in Asia.” – Government of Canada3

  • Japan is the world’s 3rd largest economy just behind China and the United States.
  • In 2015, Canada was ranked 10th in GDP, while Japan ranked 3rd.4
  • In 2015, Canada was the 11th largest exporter and 10th largest importer in the world.5 Japan was the 4th largest exporter and the 5th largest importer.6
  • Canada’s top exports include crude petroleum, cars, refined petroleum, vehicle parts, and helicopters, planes, and spacecraft.5
  • Japan is one of Canada’s top export destinations, as well as one of its top import sources.6

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Currency Name: Japanese Yen
Currency Code: JPY
Currency Symbol: ¥
Central Bank: Bank of Japan
Countries Used In: Japan
Major Unit: One Japanese Yen
Minor Unit: Sen (1/100 of a Yen)
Note Denominations: ¥1000, ¥2000, ¥5000, ¥10,000
Coin Denominations: ¥1, ¥5, ¥10, ¥50, ¥100, ¥500

JPY to CAD exchange rate analysis. Check out our daily market analysis to learn the factors influencing the JPY to CAD exchange rate today. 

Sources:

  1. https://lop.parl.ca/Content/LOP/ResearchPublications/tips/tip117-e.htm
  2. https://www.tradingheroes.com/cad-jpy-oil-correlation-explained/
  3. http://www.canadainternational.gc.ca/japan-japon/bilateral_relations_bilaterales/index.aspx?lang=eng&_ga=2.220883998.764771610.1497977016-1910332906.1497977016  
  4. http://databank.worldbank.org/data/download/GDP.pdf
  5. http://atlas.media.mit.edu/en/profile/country/can/
  6. http://atlas.media.mit.edu/en/profile/country/jpn/