CAD/JPY hits yearly low at 80.149

Volatility will most likely elevate this week as the risk-off trading might dominate markets again, due to fears of China's slowing and a commodity crash.

Today, Japan's November industrial production and capacity utilization figures came with negative numbers. Japan's Ministry of Economy, Trade and Industry Industrial output figures show a 1.7% rise year-on-year though month-on-month output slipped into contraction notching a 0.9% decline in November.

Friday's speech from Bank of Japan's Governor Kuroda, reiterated that the bank has no plans at the moment for additional stimulus, subsequently helping the yen and possibly supporting it further in the near term.

Moreover, lower crude prices dominated the resource-linked loonie, as both benchmarks fell below the $30 level, with supply staying high and demand remaining weak.

Because of such fundamental data, CAD/JPY parity hits fresh low at 79.855 levels and now trading at 80.700 levels.

A break on 79.855 levels may drag the parity towards 78.882 levels (November 2012 low) and reversal from such point will again take the pair at 83.350 levels.