Canadian Dollar versus Japanese Yen has reversed all the losses by breaking above 91.13 and settled the scores near yearly highs at 91.64 which tends to act resistance turned support for now. The touch down was provided at 93.0 price action - the market saw this area being acheived for the first time since November 2015. According to the elliot wave pattern on the monthly chart, the 5th wave up might have been either completed or the pair is still looking for some temporary bearish correction before rallying higher. Though the relative strength index in the daily and interday time frames have corrected themselves by retreiving from the yearly highs towards monthly resistance turned support 91.60 and 91.13. In the daily time frame, elliot wave count is not clear - we can see potential in the market for gaining bullish momentum and making a final leg up before falling for bearish correction of higher degree. 

BULLISH AND BEARISH CONDITIONS/ POSSIBLITIES :

In the weekly time frame, the elliot wave count is also not clear because it seems like Canadian Dollar versus Japanese Yen is in a sort of irregular correction with the bullish spike candles as wave 'b'. If the aforementioned scenario turned out to be true, we might see the pair falling towards 83.0 price action - where we have our 38.2% fibo retracement level present and this would be the completion of bearish correction of higher degree. On the bullish side, if the pair broke 93.0 resistance, we can assume our next stop to be near 94.54, but before that happens - CADJPY might come for a bearish correction towards 90.0 and exponential moving average 50 in the daily time frame before making the move towards 94.54. On the bearish side, if 90.0 level is broken, we can expect the pair to dive towards exponential moving average 200 in the daily time frame near 87.75. 

CADJPY looking for a leg down before rallying higher

Nov 02 2021