The CADJPY daily chart shows a broadening consolidation structure. The price action suggests a limited retracement to continue the previous bullish move.
The surpassing of the previous high at 83.237 will activate a second bullish impulsive cycle. We expect a limited retracement to the area between 82.029 until 81.098, from where we see an upward reaction. Our bullish bias has three potential profit targets at 86.057, 87.722, and 89.818. The invalidation level occurs if the price closes under 79.973. If that happens, CADJPY will likely develop a new bearish leg testing the lowest level of the year at 77.498.
Remember that the price is not forced to move as our outlook proposes. The charts released corresponds to an educational application of the Elliott Wave Theory. Comments issued don’t represent an investment recommendation.