- 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.