CADJPY has been in a bullish trend and has broken the previous high from the resistance. That resistance has now turned support and a retest on this level may increase the chances for the market to continue moving up from this level. The target will be the next resistance level. The low was formed as a double bottom. 

The descending trendline has been broken out for buys with validation of the candlesticks. This means, on lower timeframe we need to see another breakout buy which will provide the scale up further for the bullish side.

The retracement level in this setup is below the support level. Market may not tap this level as the the support may be strong enough to continue the move up. If it does break below, we will have the retracement area to bold the move towards the upside.

EMA 50 is bullish and may be retested at the support level, forming a confluence with the level.

The RSI is at 67 level, which is near about the over bought region. This level needs to fall towards the 50 level in order to be neutralized, after which, we will look for the markup on the pair.

CADJPY break and retest

Aug 19 2022