CADJPY definition

CAD/JPY is the exchange rate between the Canadian dollar and the Japanese yen, showing how many yen one Canadian dollar will buy. It is a commodity-linked cross that sets an oil-exporter currency against a classic safe haven, which makes it a favoured way to trade both crude prices and shifts in global risk appetite. It has no widely used nickname, and as a cross it tends to carry wider spreads than the dollar majors.

The Canadian dollar is the base currency and the yen the quote currency, so a quote of 110.00 means one Canadian dollar is worth 110.00 yen. When the price rises the Canadian dollar is gaining on the yen; when it falls the yen is gaining. You trade CAD/JPY as a forex CFD, taking a position on the price rather than exchanging the cash itself: go long if you expect the Canadian dollar to climb, short if you expect it to slip. Since the yen is the quote currency, pips are counted at the second decimal place, and your profit or loss is the number of pips multiplied by your position size.

What moves CAD/JPY most is the interplay of crude oil and risk sentiment. Firmer oil prices tend to lift the Canadian dollar, while bouts of market stress drive money into the yen and weigh on the pair. The policy gap between the Bank of Canada and the Bank of Japan adds a second layer, with the yen especially reactive to any move away from the Bank of Japan's long-running ultra-loose stance.