Final answer:
To profit from the expected depreciation of the CAD against the JPY, one should sell CAD/JPY, which means selling Canadian dollars and buying Japanese yen in expectation that the value of CAD will fall.
Step-by-step explanation:
If you expect the CAD to depreciate against the JPY, you should sell CAD/JPY. This means you would be selling Canadian dollars to buy Japanese yen. The reasoning behind this is that when a currency is expected to depreciate, investors typically divest from that currency to avoid losses. When you sell CAD/JPY, you are effectively betting that the Canadian dollar will decrease in value relative to the Japanese yen. If the CAD does depreciate against the JPY, you can later buy back the CAD at a lower price, which means you made a profit from the depreciation.