Nataly Kambur
⬤ The Canadian dollar jumped against the yen after hitting a well-defined support zone near 113.00 on the one-hour timeframe. The bounce was strong enough that traders holding long positions could move their stops to breakeven, eliminating downside risk while the recovery plays out.
⬤ Price dropped to 112.86—right at the 1.618 Fibonacci extension level—before reversing sharply. That zone marked the invalidation point for the bullish setup. Once CAD/JPY cleared 114.00, it started printing higher highs and higher lows, confirming this wasn't just a quick bounce but the start of a broader move up.
⬤ The Elliott Wave count shows the prior decline finished a corrective C wave. What followed was the beginning of a fresh impulse sequence moving higher. The chart's "Turning Up" signal reinforced that this reaction from support carried real technical weight. With no new sell signals appearing, the momentum shift looks intact for now.
⬤ Reactions from extreme zones like this often set the tone for near-term direction in forex markets. When a bounce happens with clean wave structure backing it up, sentiment can flip quickly—not just in CAD/JPY but across other yen pairs too. As long as price holds above the 112.86 invalidation level, this recovery phase should continue shaping trader expectations around momentum and bias in the currency space.
Nataly Kambur
