Helena Izotova
⬤ CAD/JPY shifted direction sharply after reacting higher from a well-defined extreme zone on the hourly chart. The move came after a corrective drop that hit the lower boundary of the projected structure before buyers jumped in. The chart shows price stabilizing around 113.30, where the correction appears to have bottomed out and set up the next leg higher.
⬤ From that low, CAD/JPY rallied aggressively, breaking through previous swing highs and confirming the broader uptrend. The rally unfolded in a clean impulsive pattern, matching the Elliott Wave structure shown on the chart. Price pushed past 115.00 and set a new high, showing real momentum rather than just a quick bounce. The series of higher highs and higher lows backs up the bullish wave count.
⬤ After topping out near 115.20, CAD/JPY pulled back in what looks like an orderly retracement. The correction is staying above the key invalidation level around 113.28, which means the pullback is still corrective and not breaking the structure. The chart shows price consolidating gains rather than reversing, suggesting the market is digesting the rally while keeping the upward bias intact.
⬤ This matters because CAD/JPY often reflects momentum shifts between commodity currencies and the yen. A strong bounce from an extreme area followed by a new high shows the trend has legs and gives clear directional guidance on the hourly timeframe. As long as price holds above support, CADJPY's structure could keep influencing short-term sentiment across related yen and commodity pairs.
Helena Izotova
