Taking support from the level of  84.666 CAD/JPY is giving a strong reverasal signal on the daily chart forming a dragon fly doji followed  by a strong green bullish candle. Though the trend is still not purely bullish, but a clear cut buying signal can be anticipated from upcoming levels.  The pair has a resistance zone around 86.661 level. The chart on the 4H time frame is looking good to make an entry after the breakout of resistance zone of 86.66 which is also somewhere near at 50% Fibonacci levels, also MACD is at -0.184 giving buying signals and RSI at 57.619 which is quite neutral.

Considering the strong reversal pattern on the weekly as well as on daily chart supported by positive numbers by indicators a long trade entry can be made in CAD/JPY. After a retest on the 50% Fibonacci level a long positional entry can be  made keeping a potential target of 88.037and stoploss at 86.218.

CAD/JPY

Aug 23 2021

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