Canadian Dollar versus Japanese Yen broke above 2017 high 91.80 while providing us with a touch down at  Dec 2015 strong resistance 93.0 price action. This bullish momentum was built after the market failed to break above 91.15 in June and July, and found support at exponential moving averages 50 and 200 in the monthly time frame near 84.50 - 86.0. CADJPY took a sharp bullish reversal from the aforementioned technicals and price actions while the hawkish stance also being supported by 50% and 61.8% fibo retracement levels, present near the EMA 50 and 200 in the monthly time frame. Coming down to the weekly time frame, the bulls on CADJPY are failing to provide a strong breakout above 93.0 price action that - would open doors towards further gains but somehow the weekly resistance and the overbought conditions in relative strength index on daily chart is giving hints for temporary bearish reversal before making any major breakouts. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

According to the elliot wave pattern, Canadian Dollar versus Japanese Yen seems to be in the final 5th bullish wave at the moment and if the pair broke above 93.0, we can settle our targeted destination at 93.30, or with an extra extended leg up at 96.0. After that we can expect a bearish correction of higher degree. On the bearish side, if CADJPY broke below 91.0 resistance turned support, we can expect a dovish move towards 88.33 - 89.15. As far as the pair stays above 87.35, we cannot expect the continuation of bearish trend; only an impulsive bearish move, that lands the pair below 86.20 - would activate the dovish trend on intraday time frames. 

Is CADJPY Accumulating Above 50% Fibb ?

Oct 26 2021