CADJPY has witnessed indecisive movement since June’s attempted pandemic recovery. Levels almost reached $82 as the choppy market went into full swing.
Another two peaks during this period had led prices to the mid-$78 region, with the Ichimoku cloud acting as a mean.
However, a recent hidden bullish divergence now hints at the bias returning to the upside. Another attempt at the previous peak of $81.41, could lead to further preceding test levels.
A look at the intraday chart shows that momentum could be slowing, with a bearish divergence possibly leading prices down in the short-term.
The 38.2% of the downside 81.40/77.92 Fibonacci leg eyes the first target, as the $80 psychological level will be breached.
The 50% and 61.8% will be the next tests, with the latter acting as a current support level. If this support is broken, then monthly lows could ensue.