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CAD/JPY - Bullish Shor-term; Bearish Medium-term

The CAD/JPY looks slightly bullish in the short-term, but bearish in the medium-term. Therefore, it could be setting up an interesting "sell-the-dip" technical play.

CAD/JPY Daily Chart 11/3


(click to enlarge)

The daily chart shows a market that has been bearish since June this year, from around 101.10 down to about 87.40 in August. We have since been observing a bullish correction. 

It looks like price bottomed and is now confirming that bottom. This could then lead to another bullish correction swing. Now, this is a short-term outlook that should be limited to 94.00 Here price will be testing the 100-day simple moving average, the current consolidation pattern resistance, and a previous support area going back to February. 

Now, from 94.00, since the prevailing trend has not been broken, there is downside risk back towards 90.00 and possibly the 87.40 low. Even if you are conservative on the bearish outlook, or still believe CAD/JPY is making a bullish reversal, we might still be able to expect some bearish attempt from the 94-95 area back towards 92.00, a resistance pivot area in September.