CADJPY took a bearish reversal from 61.8% fibb retracement level i.e 87.62 price action towards 50%fibb at 86.57 the very next day of our published analysis on 24th Aug, taking advantage of the overbought conditions on interday time frames - keeping the relative strength index in regard. The bearish correction was anticipated based on the pair failing to break above 87.80 at first and losing the bullish momentum below the exponential moving average 50 which was providing a psychological level in terms of reversal. Secondly we suggested that a breakout above 87.0 would drive CADJPY towards 87.80 but the move shouldnt be taken as a bullish sign because for further gains - breakout above 88.34 is a must and observing the market from current structure, the pair has taken a bearish reversal from 61.8% fibb and exponential moving average 50 in daily once again. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

CADJPY has entered the ichimoku cloud after breaking above Senkou Span A and is flirting with exponential moving average 50 in daily, but to properly understand the next move of the pair - we need to look inside weekly chart. The weekly time frame is suggesting that the pair is losing bullish momentum and is still below a major resistance 87.30-88.34, only a breakout above would open the way towards 88.76, 89.80 and 90.20.

On the bearish side we need to look for impulsive dovish closing below 86.80 which would indicate that the next stop for CADJPY would be exponential moving average 50 in weekly i.e 85.74. 

For interday retail traders, Canadian Dollar versus Japanese Yen is stuck between exponential moving average 50 and 200 in daily time frame i.e 87.70 and 86.72, i would advise not to take any entries until we find the market orders being filled in accordance to our bullish and bearish conditions on weekly time frame. 

CADJPY

farhan fazal

Sep 07 2021

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