As anticipated in our previous article with hawkish projections over Canadian Dollar versus Japanese Yen, the market went for a retest of our , upper trend line after breaking above 87.50, our key price action, the pair managed to stay above and is looking forward to more gains in the market. In the four hourly chart, the pair found support at exponential moving average 50 and 200 along with 87.20 support zone near our upper trend line while the relative strength index in the four hour chart is also trading 50 - indicating that the bulls are gaining grounds for a hawkish run. The Senkou Span A and B of the ichimoku cloud are being taken as another support by the pair after flying high above 61.8% fibo retracement level.  The relative strength index on the daily time frame is also supporting the hawkish trend staying intact and will be targeting 89.20 and 90.0 price action. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

We have some expectations from Canadian Dollar versus Japanese Yen on the bearish side because of the weekly and monthly strong resistance above the pair at 88.30 which is a current hurdle - preventing the pair from further gains. CADJPY is strongly bullish above exponential moving averages 50 and 200 in daily time frame along with 61.8% and 50% fibo retracement level, we only need a bullish closing above 88.30 which will open the gates towards 89.20 and 90.0. In worst case scenario, if an impulsive bearish rally took place - driving the pair below 84.46, would indicate that the CADJPY market has adapted to the dovish rally, targeting 82.90 and 80.96. 

CADJPY

Oct 02 2021

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