CADJPY Expected to Reverse From 61.8% Fibo
farhan fazal
CADJPY·
Dec 15 2021
Take Profit +2.29%
Holding time 15d5hr
88.290
Entry price
90.313
Take profit price
2
MARKET FORECAST :
Canadian Dollar versus Japanese Yen took a strong bullish reversal from 87.64 near the 61.8% fibo retracement levels to balance out its losses by extending its reach towards exponential moving average 200 in the daily time frame at 90.32. This move was limited from acheiving any further gains by 38.2% fibo retracement level and exponential moving average 200 in the four hourly time frame. CADJPY broke below the bearish channel of dovish correction on higher degree but managed to take entry inside again. At the moment there is a thread line difference of CADJPY being slightly outside of the bearish channel, while the bearish impulsive breakout on 25th Nov is projecting towards further losses in the concerned market.
BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :
Looking at the bullish expectations from te current market perspective and price range, Canadian Dollar versus Japanese Yen can reverse the losses by continuing its bullish trend from 61.8% fibo retracement level again i.e 88.21, while targeting 38.2% fibo level at 90.061 and exponential moving average 200 in the daily time frame. Adding another possibility for the bullish maneuver would be the hidden divergence made on MACD at 21st Sept 2021 and 6th Dec 2021, which can provide enough reasons to bulls for taking over Canadian Dollar versus Japanese Yen.
On the bearish side, we are looking for a breakout below the 88.21 zone while also crossing 87.80 support zone, landing CADJPY at 87.30 as its first targeted destination. Another possibility for the bearish projection can take place if the market retraced to exponential moving average 50 in the daily time frame and was proceeded by a bearish impulsive move below the 50% and 61.8% fibo retracement level, which will definitely push the pair lower.