CAD/JPY has been bullish upon producing an ABC pattern. The price after being bullish had a bearish correction and found its support. It produced a bullish Marubozu candle and headed towards the North. Yesterday’s candle came out as a bullish candle as well. Thus, the buyers may keep their eyes on the pair to go long and push the price towards the North further. Major intraday charts show that the price has been in a bearish correction. They may get bullish upon finding intraday support. Let us find out the levels that may play a significant role in pushing the price towards the North as far as intraday charts are concerned.
Chart 1 CAD/JPY Daily Chart
The chart shows that the price produced a bullish engulfing candle at 78.000 and headed towards the North. It had a rejection at 79.875 and made a bearish correction. The level of 79.000 held the price and produced another bullish engulfing candle pushing the price towards the North and making a new highest high. A price breakout at 80.800 may attract the buyers to go long in the pair. The price may find its next resistance around 81.750.
Chart 2 CAD/JPY H4 Chart
The chart shows that the price made a bullish breakout at 80.350 and traded above the level. It has been in consolidation. The buyers may wait for the price to make a bearish correction and produce a bullish reversal candle at 80.350 to go long in the pair. The price may find its next resistance around 81.350. On the other hand, if the price makes a bearish breakout at 80.350, the pair may get choppy and find its support around 79.875 again.
Chart 3 CAD/JPY H1 Chart
The chart shows that the price has been in consolidation. The level of 80.550 has been working as a level of support. If the price produces a bullish reversal candle at the level and makes a bullish breakout at 80.800, the buyers may go long in the pair and push the price towards the level of 81.130. On the contrary, if the price makes a bearish breakout at 80.550, the price may make a bearish move and find its next support around 80.270. Since the H4 chart is bullish biased, the H1 buyers may hold their long positions by taking a partial profit at 81.130 and let the rest of the trade run.
The daily, the H4, as well as the H1 chart, are bullish biased. Considering these three charts, it seems that the pair may end up producing another bullish candle in the daily chart.