CADJPY surged after the Bank of Canada’s tapering decision. After passing the 200-hour moving average, it is trying to stabilize just over %61.8 of April’s down move. A possible short-term correction is due for CADJPY and if it falls below 87.20, the price may target around %50 level, 200-hour MA and the uptrend line that is recently forming. But this possible correction most likely be temporary and appreciation of the Canadian Dollar will resume. With or without correction if CADJPY can move past the 87.62, the surge will continue and the price re-test the previous top of April.
