MONTHLY : After much observation - CADJPY on the monthly chart has formed a head and shoulder structure with its shoulder as a strong resistance at 94.70. Market price 90.50 is another major hindrance itself in causing a temporary blockade for the pair from breaking out. On the technical side CADJPY retraced from the 70 level on the monthly relative strength index but isnt strong enough to provide any bearish evidences. EMA200 is counted as a strong level - specifically on the monthly time frame, failing to provide any breakout below and taking a retrace above might be a bullish indication as well. The elliot wave count, starting from the highs of October 2007 and tracing it to our current market scenario we end up with a bullish correction of higher degree which ended at  91.40 and the market fell to our current daily low at 85.39. 

WEEKLY : On the weekly chart CADJPY reacted to the EMA50 on a strong note - taking a pull back from 85.20  and also breaking above major price action at 87.0 with current market price at 87.98. We also have our 50% and 61.8% fibb level from the weekly perspective, the pair retraced with a hawkish tone above and pointing at its near weekly highs at 91.0. Coming to the wave count, CADJPY completed its correction of higher degree with wave c ending at 85.20 and the current wave is pointing towards more bulls in the market to have fulfilled the orders and might be set to continue their bullish impulsive structure. 

DAILY : On the daily time frame we will stick to our previous analysis on CADJPY which was published on 20th July. Currently we are forecasting that the Canadian dollar versus Japenese Yen will settle its score near 88.70-89.0, we also have our EMA50 situated there with supply and demand zone to be portraying neutral mood. Incase the market breaks below its daily low at 87.0, we would see the market moving towards 86.40 as its next stop and that will be the deciding point if we will be experiencing a bearish breakout or a bullish continuation of impulsive wave structure. 

CADJPY BULLISH FORECAST

Jul 24 2021