CADJPY: – Bullish attack at support level after a steep downfall

Overview: – By looking at the daily technical chart we can see that earlier pair was heading south side with full of bearish momentum and breaking all the major and minor support levels. But from last couple of days, we witnessed that bears denied to go down further and bulls took the charge with slow speed but yesterday a massive bullish attempt can be seen where from starting of the day bulls did not stop and took the pair at 95.50 level which was a fabulous move.

Technical Analysis:- From technical prospective we can see that a rounding top pattern has been completed and bears completed their journey so well manner on the chart.  The recent candle is bullish marabuzo candlestick all the major and minor EMA lines which is providing us bullish signal. A bullish crossover on the MACD indicator is favouring the bulls RSI is moving above the 50 line which is providing us bullish signal. Overall, all the set-up is indicating that further bullish momentum is on the cards.

What Next: – A daily closing below 96.32 level will open the way towards the 97.50 level and it will give us further confirmation of bullishness. Well, the way bulls have snatched the bite from bear’s mouth it seems like bulls are going to rock for further sessions as pair is already trading between the crossed moving average lines. Yesterday we have witnessed a big bullish marabuzo candlestick in the form of bullish engulfing candlesticks which is providing us bullish signal.

Trade idea: – Based on chart and studies above we can say that buy pair at 96.80 target is 97.30 and 97.90 with the stop loss of 96.20.

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