Last Bullish Stance on CADJPY

The Canadian dollar versus the Japanese yen currency pair may have topped at 82.08, but the bulls still got one more card in their sleeve.

Long-term perspective
After bottoming at 78.49, the price took off in a very convincing manner, conquering the 81.00 psychological level and topping at 82.08, a mark of a very determined bullish profile. But the price was not able to maintain the gains and fell bellow the solid support area at 81.38. This behavior could, frankly, make the bears thing that the bulls don’t have enough steam left for further advancement.
However, one thing to count in is the 81.00 psychological level, with the Friday candle etching a low exactly there. And since it can be seen that the price has highs and lows that respect this level, including the high of August 13 which just might have been confirmed as support by the September 20 candle, one could consider that concluding to a bearish profile is a little ahead of time, as the price should still define its intentions.
So, if the price touches 81.38 again but doesn’t manage to oscillate above it, then 80.00 is in reach. On the other hand, if the price manages to close above it, then 82.71 is exposed.

Short-term perspective
The rally that started at 79.21 appears to take the shape of a falling wedge, a continuation pattern, which in this case should unleash an appreciation.
As long as the double support etched by the lower line of the pattern and the 81.11 level holds, then the piercing of 81.77 is imminent, with the confirmation of the latter serving as a jump-start towards 82.43 and then 82.94.
On the other hand, if the double support fails, then 80.64 and 80.17, respectively, are to be paid a visit.

Levels to keep an eye on:

D1: 81.00 81.38 82.71 80.00
H4: 81.11 81.77 82.43 82.94 80.64 80.17


If you have any questions, comments, or opinions regarding the Technical Analysis, feel free to post them using the commentary form below.

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