Canadian Dollar versus Japanese Yen failed to break above exponential moving averages 50 and 200 in daily while the bearish trend was also being supported by our trend line situated at 87.70 - 88.20. The pair completed its bullish correction of higher degree in four hourly time frame and provided a closing with higher high at 87.88. In our previously published analysis on 7th Sept, we anticipated that the weekly time frame was suggesting that the pair was losing bullish momentum and was below a major resistance 87.30-88.34, only a breakout above would open the way towards 88.76, 89.80 and 90.20. As the market failed to break above, the bearish side required an 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. At the moment the pair did break below the aforementioned support turned resistance 86.80 and is currently standing above 61.8% fibb retracement level.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

From the current market structure and inverted head and shoulder pattern being formed  - is indicating that the 61.8% fibb retracement level can become a strong level of bullish continuation of trend. CADJPY needs to hold above 85.80-86.0 if it wants hawkish sentiments to be supporting a ride towards our upper trend line and higher again. On the bearish side, if CADJPY failed to hold above the aforementioned area and broke below the 61.8% fibb level with an impulsive fractal closing, this would lead the pair towards 50% fibb at 84.46. We are more focused on the chart structure and the price action which holds alot of liquidity and supply demand zone - projecting towards a hawkish continuation of trade.

CADJPY

Sep 19 2021

1