Canadian Dollar versus Japanese Yen has adapted to bullish sentiments - precisely in accordance to our previously published analysis/ signal on 19 Sept, indicating some major factors for the pair to rally towards   87.30 as its first targeted destination. Our anticipations were based on market structure and inverted head and shoulder pattern being formed  which indicated that the 61.8% fibb retracement level can become a strong level of bullish continuation of trend. Also CADJPY after holding above 85.80-86.0, called for a shift of momentum to support hawkish sentiments and take a ride towards our upper trend line again. The pair managed to gain some positive traction since Wednesday and recovered a part of the losses from one-week lows amid a modest pickup in the US dollar demand. However, bullish crude oil prices continued underpinning the commodity-linked loonie and kept a lid on any meaningful gains for the CADJPY pair, at least for now.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The supporting factor, to a larger extend, was offset the recent run-up in crude oil prices, back closer to July swing highs that brought modest gains to the Canadian Dollar across the board against the other currencies. However, CADJPY is again hovering below our upper trend line and exponential moving average 50 in daily but managed to break above the monthly, weekly and daily pivots for a maneuver of hawkish bellet. This can be called as continuation of bullish trend because of the aforementioned reasons and failing to break below 50% fibb level, a breakout above 61.8% would confirm that the pair has entered the bullish impulsive rally again - targeting 88.42 and 88.73. 

CADJPY

Sep 24 2021