CAD/JPY retracing towards 83.00 amid Japanese political scandal

• BoJ minutes on Tuesday at 23.50 GMT.
• Poloz to speak on Tuesday at 14.30 GMT.

The CAD/JPY is currently trading at around 83.30 up 0.15% on Monday so far. Last week the CAD/JPY gained more than 200 pips with Friday accounting for the most part of the move as Mr. Kuroda insisted that the Bank of Japan “ will patiently continue with current aggressive stimulus to achieve 2% price target”.

CAD/JPY daily chart

The CAD/JPY is trading below its 23.6% Fibonacci retracement at 83.80 and is consolidating after gaining more than 100 pips on Friday.

The Yen has seen a boost after a scandal involving the Japanese Prime Minister Abe triggered risk aversion. Allegedly, some state-owned land had been sold at a very low price while, the Finance Minister, Taro Aso, said that the sales documents were forged.

On the JPY macro news front, the BoJ monetary policy meeting minutes are slated at 23.50 GMT on Tuesday 

Poloz from the Bank of Canada is scheduled to speak on Tuesday at 14.30 GMT. He will discuss the labor market and take questions from the audience afterward. Canadian ADP employment change in February is scheduled on Thursday at 12.30 GMT. January’s Manufacturing Sales numbers are set to come out on Friday at 12.30 GMT. 

The CAD/JPY is now supported by the 83.00 figure and 23.6% Fibonacci retracement. Next significant support is seen at 82.50 with the 50% Fibonacci retracement. To the upside 83.50 is the high of last week and the 200-period moving average. Further up, the 84.00 figure with the 23.6% Fibonacci retracement level on the daily chart is likely the next resistance level. 

CAD/JPY 4-hour chart