Canadian dollar versus Japenese Yen fell from its daily key price action level i.e 91.15 in June  which was one the most genuine levels to execute trades on the pair in terms of going short. The bullish impulsive wave formation was eventually completed and deeper correction was awaited. 90.01 was another important supply and demand zone where the pair had consolidated itself for more than 16 days, followed by a breakout on 16th June with its first corrective wave ending at 87.95. Now this couldve been a corrective structure 'abc' being completed but the concept behind deeper corrections werent satisfying the norms of completion. The reversal taken from 61.8 fibb on 8th July and not breaching our golden ratios suggested that there was an upcoming awaited correction before it generates the momentum to continue its bullish rally again. That is exactly what happened if we observe CADJPY under H4 chart, reverting its gains from reversal strictly after touching EMA50 - forming a resistance in shape of upper trend line and going for a completion of its deeper corrective structure. 

BULLISH AND BEARISH POSSIBILITIES/ CONDITIONS :

The pair was able to move above its daily support one but is still struggling against the daily pivot which is just another temporary hurdle. Our major support at 87.0 price action is considered to be the game changer, if the level is breached, it might be an indication that CADJPY has stepped out of its bullish ralley under intraday and daily time frames and will move further down towards 50% fibb level. This level will be the waiting zone to find out if we were still in a corrective formation or the bearish rally has initiated and should be looking for bearish opportunities. As of for now we are more bent towards the market favoring the bulls with its first breakout above our weekly pivot, pushing CADJPY all the way up to its monthly pivot which in itself will be the confirmation of the 5 wave bullish impulse. 

CADJPY H4-D1

Jul 15 2021

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