CAD/JPY takes a tumble. What's next

Technical Analysis

Author: Adam Button | cadjpy

CAD/JPY down more than 1%

The yen is the best performer today and the Canadian dollar the laggard. The pair is an interesting technical study.

Earlier this week, the 55-day moving average capped intraday gains while the pair failed to close above the 100-day moving average on a closing basis.

There was also a fork-top or a double gravestone doji.

Now, the pair has plunged lower following the BOC decision. The weakness has cut through most of the recent gain. However, it currently sits right at the 61.8% retracement of the climb.

If the selling extends in the day ahead, expect a complete retracement.