According to our previous analysis, published on 30th July, we posted bearish indication on Canadian Dollar versus Japanese Yen based on retreiving with a bearish reversal from 88.0 with daily relative strength index trading below 50 level and MACD also depicted signs of weak bullish momentum to have sustained at that level. Canadian dollar versus Japanese yen was also trading near weak supply and demand zone, which wasnt being supported enough by any bullish sentiments to have provided it with a hike towards 89.0. 61.8% fibb retracement level was going to be our targeted destination, but did not anticipated any further move because of our strong price action at 85.66 and exponential moving average 200 in daily - acting as a strong support. The market reverted its losses 110 pips prior to reaching our targeted destination i.e from 86.61 rather than 85.50   In weekly time frame CADJPY has completed its bearish correction of mediocre degree and by looking at its current structure, we might be in the third wave of a smaller degree or a first wave of a normal degree. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

In daily time frame CADJPY is standing near our exponential moving average 50 while standing above daily, weekly and monthly pivots i.e 88.85, 87.85 and 86.45. Also the pair took a bullish reversal from our 50% and 61.8% fibb retracement level on daily time frame from major price actions and the current position of CADJPY under the lens of elliot wave pattern in daily and weekly - seems to have all favoring the bulls with more chances of further gains. But we wont be taking any hasty decisions unless we have a bullish closing near 88.60 and above the current market price because there are some weak indications of supply zone which will eventually force the demand to fall as well. For selling the pair we would require a closing below 88.0-87.70 and targeted destination as 86.60 and 85.50. 

CADJPY WITH SENTIMENTS OF NEUTRALITY

Aug 11 2021