The CAD/JPY has currently formed a Type II W pattern (Leaning W), suggesting bullish continuation. However, we expect a retracement to the “heart” of the W before continuation occurs.
There are 2 POC zones price has to retrace to before we take an entry. POC 1, 82.78-88 [W L3 // D L3 // 4/8 // Historical Bullish Rejectons] and POC 2, 82.56-66 [W L4 // D L4 // 3/8 // Order Block “Heart” of Type II W]. Only when price retraces, closes the runaway gap, and enters wither one of the POC zone, would we expect further bullish price action. The pattern is Type 2 W bullish (W pattern with an angle). A break and close above 82.30 after entry suggests next bullish targets in the upper daily range in the 84.00 area.
As long as price does not close below 82.40, targets are 83.50, 83.80 with an extended target up to the 84.00 round level.
Price closing below 82.40 invalidates this analysis.