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 at the 61.8% is in confluence with the support level. Market is already at this level at has a potential to further continue up for the market to tap the profit target marked at the resistance. 

EMA 50 is bullish and may be retested at the support level, forming a confluence with the level. The market has retested the market at the support level and the price action maybe rejecting the currend scenario. This confluence is a strong uphold for the market. 

The RSI is at 60 level, which is near about the over bought region. This level still indicates the window towards the over bought region. Other than that, we still can wait for the market to fall at the neutralized levels in order for the market to has a spring effect. 

CADJPY stacking

Aug 23 2022