CAD/JPY(Loonie Yen)

What is CAD/JPY?

CAD/JPY pairs the Canadian Dollar against the Japanese Yen. CAD is a commodity currency tied to crude oil; JPY is a safe-haven currency that strengthens during global risk-off. The cross is therefore highly sensitive to both oil prices and risk appetite.

Daily ranges of 60 to 100 pips are typical. The pair uses the 2-decimal yen-pip convention.

Base currency

CAD (Canadian Dollar, Canada)

Quote currency

JPY (Japanese Yen, Japan)

Pip location

2nd decimal (0.01) — yen-quoted

Volume share

under 0.5% of daily global forex turnover

When to trade CAD/JPY

CAD/JPY is most active during the NY + Tokyo handoff (5 to 11 PM ET). Canadian markets are still active into the Tokyo open, providing meaningful liquidity in this window.

Avoid the late-London window — Canadian markets haven't opened yet and Tokyo flow has thinned.

Best session

NY + Tokyo handoff (5 to 11 PM ET)

Avoid

Late London (12 PM ET onwards)

News events that move CAD/JPY

BoC rate decisions and crude oil inventory data drive the CAD leg. BoJ events and major risk-off equity moves drive the JPY leg.

Canadian CPI prints produce 40-60 pip moves. The pair is highly correlated with the S&P 500 — risk-on rallies push CAD/JPY higher, risk-off selloffs push it lower.

Central banks

Bank of Canada (BoC), Bank of Japan (BoJ)

Key releases

BoC rate decisions, BoJ rate decisions, Crude oil, Risk-off events, Canadian CPI

Want the full event calendar? See the economic calendar, and look up unfamiliar terms in the forex glossary.

CAD/JPY FAQ