Technical analysis for CAD/JPY is showing that the price reached the 1st target of the bullish weekly wave at 1.272 FIB extension at 87.90 and closed with a high-test candle on the weekly chart. This is an early signal for a potential pullback on both the weekly and the daily chart. The first target of this pullback is the previous minor daily low at 85.75, the second target is at the 0.386 FIB retracement at 85.40.
On the other hand, if the CAD/JPY breaks above the previous weekly high at 88.08, it will resume the weekly bullish wave and send the price toward a 1.618 FIB extension at 90.70.
Daily chart:
Weekly chart:
