In our previously published analysis we portrayed neutral sentiments on CADJPY because of its consolidating behavior between 87.0 and 88.35. We were expecting that the market might provide us with a bullish breakout depending upon the structure of bullish correction with an expected wave 'c' but unfortunately Canadian Dollar was dominated by the Japanese Yen strength and dragged the pair all way down towards our major support zone 85.60. 86.94 and 85.60 are two major price action zones on our chart because of the presence of 50% and 61.8% fibb retracement levels at the aforementioned levels. 50% fibb level carries high liquidity and supply demand because of maintaining itself above the 85.61 mark since 7th March. This reason became a strong stimulus for Canadian Dollar versus Japanese Yen to provide a strong bullish pullback with 220 pips of gains. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

CADJPY had completed its bearish correction of higher degree in weekly time frame followed by a sharp bullish pull back twice from the exponential moving average 50. The second time pull back from the aforementioned zone has changed the sentiments from bullish to bearish on daily and intraday time frames because of failing to break above 88.35 zone. From the recent market scenario on daily chart, CADJPY needs to break above 87.0 in order to provide us with a touch down at 87.80-88.34. A bearish impulsive closing below the aforementioned levels will automatically mark the continuation of bearsh trend with our next stop at 84.42 i.e 38.2% fibb retracement level. Senkou Span A and Senkou Span b to the ichimoku cloud are also present at the same price as our major resistance i.e 87.70-88.34, we advice retail traders not to miss this selling opportunity if the market reaches this point and provides a strong bearish impulsive closing below the aforementioned level. 

CADJPY

Aug 24 2021