CADJPY completed its corrective structure near its April 2021 lows at 87.00 level which was a strong support as well as a price action to motivate the pair for a retracement with dark cloud cover candle closed in progress on Friday market closing. It also breached above its daily resistance which is present at 87.70 level and ended its weekly move near daily resistance one which was actually a weekly support two before the break out. After the corrective structure is completed we all are aware of the first instant impuslive wave which is initiated if there arent any signs of complex corrective formation for the pair to enter itself into and that is exactly what happened incase of CADJPY in terms of firmly reversing from 61.8fibb level. If the trades were keeping the ABC correction in regards, they wouldve also been very keen on noticing the 61.8 fibb for a quick buy. The lower trend line being broken and resistance from the upper trend line both are almost within the same price zone along the EMA50 creating a scenario of an "X" wave being formed with the bullish impulse being ended near the aforementioned levels.

BULLISH & BEARISH CONDITIONS/ POSSIBILITIES :

We are focused on the pair leaving its foot prints near 89.60 and 89.70 where our weekly and daily pivots are positioned, a strong bearish or bullish impulse from that price action will further suggest if the dovish wave count will be kept in regards or a bullish continuation of trend will be felt. According the larger time frames wave count and structure formation is suggesting a bullish continuation but all is vague because of the strong techicals in the way. So for now this is obvious that the pair will retrieve itself towards the weekly and monthly pivot where our EMA50 is and after that a bearish fractal confirmation will be taken as a move towards EMA200 on daily time frame i.e 85.80 level, else a breakout above the major technical hindrances will make us call it a continuation of bullish trend.

CADJPY D1

Jul 10 2021

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