- 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.
The monthly chart is bullish above structure with little in the way in terms of the structure in the near term.
The weekly chart has already tested the 38.2% Fibonacci retracement level and the price rejection was strong.
Bulls can target higher highs as the price would be expected to at least fill in the wick of the prior day.
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.