FX.co ★ munaroh | CAD/JPY

I’ve been following the CAD/JPY pair closely, and overall, the market continues to move within a clear upward trend. The structure still favors buyers, and the general direction remains bullish. However, despite this positive momentum, the price is currently facing a strong resistance level around 116.40, which corresponds to the Murray 5/8 level. This zone has proven to be a significant barrier, as buyers have struggled to push through it so far. From my perspective, this resistance level is the key factor to watch in the short term. If buyers manage to break above 116.40 with sufficient strength and confirmation, it would signal a continuation of the uptrend. In that case, I would expect the price to move higher toward the next target, which is located around 117.18, corresponding to the Murray 6/8 level. This would be the next logical objective for bullish positions, and it could offer a solid opportunity for further gains. That said, I also recognize that the market does not always move in a straight line. Even within a strong uptrend, temporary pullbacks are quite common. If buyers fail to break through the 116.40 resistance, the price may begin to correct downward. In such a scenario, I would expect the pair to move back toward the lower part of the 116.00 level. This area is particularly important because it lies between the Tenkan-sen and Kijun-sen lines on the H4 timeframe. These two Ichimoku components often act as dynamic support levels during an uptrend. A pullback into this zone would not necessarily invalidate the bullish structure; instead, it could simply represent a healthy correction before the next upward move.

However, if the price breaks below this support area with strong momentum, it would signal a deeper correction. In that case, the next downside target I am watching is around 115.62, which corresponds to the Murray 4/8 level. A move to this level would indicate that sellers are gaining some control, at least in the short term. Even then, I would not immediately abandon the bullish outlook unless the market shows clear signs of a trend reversal. As long as the broader structure remains intact, I still prefer to look for buying opportunities rather than selling. Overall, my approach is to remain flexible and responsive to how the market reacts at these key levels. The 116.40 resistance is the main trigger for bullish continuation, while the 116.00 support zone acts as a critical area for potential pullbacks. For now, I am watching closely to see whether buyers can finally break through resistance or if the market will enter a corrective phase. Either way, these levels provide a clear framework for planning trades and managing risk effectively.