On the daily time frame we witnessed Canadian Dollar versus Japanese Yen taking a bullish reversal twice from the 61.8% and 50% fibo retracement levels and extended its hike towards 92.20. Now the market dove back below the 23.6% fibo level and has taken support of the 38.2% fibo level. Also the pair managed to trade above the Senkou Span A and B of the ichimoku cloud. The exponential moving average 50 on the daily time frame is another support which might provide another push up to the pair. On the other end the trend line is broken to the down side and a bullish possible retest might await before moving lower. 

In the four hour time frame, scenarios are more biased on dovish sentiments keeping the technical structure and technicals in view. The ascending head and shoulder like pattern has been broken to the down side, proceeded by a retest of the resistances near 91.20. CADJPY failed to continue its bullish rally with a closing above the ichimoku cloud. Instead, we can observe the pair landing below the exponential moving averages 50 and 200 in the four hour chart. The pair failed to provide a new low on the four hour chart and might target the exponential moving averages before moving any lower, so we can expect a bullish pull back or even a retest of the trend line because we can see the stochastic being in the oversold conditions on the four hour chart. But awesome oscillator is showing weak bullish momentum on the same time frame, which means a short bullish correction can be proceeded by a strong bearish continuation. 

As long as the 91.20 resistance prevails on a shorter note, this could be strong confirmation of bearish signal. 

CADJPY Preparing For a Bearish Maneuver

Jan 30 2022