CAD/JPY Sell-Off: Oil Plunge and Steady CPI Weigh on Loonie

CAD/JPY showed a major  sell-off as Crude oil price tumbles after ceasefire agreement news. It hits an  high of 1 and  is currently trading around 106.047.

The Canadian Consumer Price Index (CPI) for May 2025, published on June 24th, revealed a 1.7% year-over-year increase, mirroring the figure from April and signaling continued stability in inflation. Notably, the month-over-month CPI rose by 0.6%, reversing the modest 0.1% decline observed in April and modestly surpassing market expectations. This uptick suggests a broader elevation in consumer prices across various sectors.

Technical Analysis

CAD/JPY is currently trading below the 34- and 55-EMA on the 4-hour chart. The immediate resistance is at 106.35; a breach above this level could shift targets to 107/108.25. On the lower side, near-term support is at 105.50,and a break below this support could lead to declines toward 104.78/104.50/103.85/103/102.50/10.65/101/100.

Indicator Trends

 CCI (50)- Bullish

ADX (14)-  Neutral

Trading Strategy Recommendation

It is good to sell on rallies around 106.28-30 with a stop-loss at 107 and a target price of 104.