CAD/JPY will continue to move higher in the following days

The pair will continue to move higher in the following days towards a major resistance line. Despite lifting the country’s national emergency back in May, the Japanese economy was not able to achieve a robust recovery. In fact, reports show that the current to the medium-term outlook of the world’s third-largest economy was bleak. Coincident and Leading Indicators both posted negative reports yesterday, July 27. The figure for Coincident Indicator was recorded at -6.7% for the month of June from -5.5% in May. Meanwhile, expectations for the Japanese economy in the next six (6) months were 78.4 points. This is higher than the prior report of 77.7 points but below expectations of 79.3. Moreover, the economic activity of all Japanese industries was still sitting in the negative territory at 3.5%. Meanwhile, the decision to slashed 150 basis points on its interest rate by the BOC back in March is proving to be beneficial to the Canadian economy and its currency.