- CAD/JPY bulls are back in play following a restest of support.
- Prospects for an upside extension are high considering the longterm bullish trend.
CAD/JPY is moving in a strong monthly bull trend with little sign of the bulls growing weary. Instead, from a weekly and daily perspective, the price remains bullish above the 10-EMAs.
The following is a top-down analysis of the pair that illustrates where bulls are entering the market with the prospect of a bullish continuation.
Monthly chart
-637486880086949479.png)
The monthly chart is bullish above structure with little in the way in terms of the structure in the near term.
Weekly chart
-637486880635429141.png)
The weekly chart has already tested the 38.2% Fibonacci retracement level and the price rejection was strong.
Daily chart
-637486874293897948.png)
Bulls can target higher highs as the price would be expected to at least fill in the wick of the prior day.
4-hour chart
-637486874841584623.png)
As illustrated, the wick on the daily time frame represents the 4-hour correction that has been supported at the structure.
A stop loss below structure with a target towards a -272% Fibonacci retracement of the daily correction's range.
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