Weekly Chart
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In the long term, CAD/JPY could bring bears some gains if the reversal does indeed go through. While 76.65 limits the weakness for now, there is still some potential for an extended bear-trend as low as 73.14, a level the pair has not closed the month below since 2008. In case the reversal takes on a steep slope as did the two-year plunge, we could see tests of 2014 highs in 2018 already. While some technical indicators, such as the MACD show decent momentum for the current downtrend, the RSI and ADX remain in the grey area, supporting our doubts over the pair's ability to dig into levels unhampered for more than a decade, suggesting a trend reversal. The Andrew's Pitchfork shows the pair trading relatively close to the upper trend-line and consistently above the median line, providing a benevolent environment to produce a BUY signal in the nearest future.
The weekly chart additionally shows some trouble at 88/89 yen, where the Fibonacci Fan arc and Pitchfork parallel cross to cause a hitch at the least, suggesting that there could be a ranging phase in Q2 of 2017. A red cloud points to 79.95/84.34 being a critical zone where supply could temporarily make the pair struggle.
Daily Chart
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The daily chart, however, suggests that 79.65/80.19, the cloud resistance and Pitchfork boundary, could cut the gains for now, pressuring a retracement sooner than expected. On the other hand, the junior channel observed on the hourly and shorter time frames, has gained enough strength to climb further just to fail at the 80.20/30 yen mark temporarily to respect the bounds of the newly established channel. Based on the above information, we see some contradiction in the time-frame for the correction, causing us to sway between a two-week and two-month period - and it could truly go either way.
Hourly Chart
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While Canadian Manufacturing Sales are likely to shake up the markets on Tuesday midday (12:30 GMT), we look forward to Wednesday's trading session when a set of high impact Canadian data could leave investors skittish as the market movements become unpredictable. With BOC Monetary Policy Report, Rate Statement and Overnight Rate coming out at 14:00 GMT, the CAD/JPY market will face some more flings at 15:15 GMT and 20:15 GMT when the BOC Press Conference and Governor Poloz's speech take place respectively.
Aggregate Outlook
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Aggregate Technical Indicators
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