CADJPY Compresses for a Breakout: 111.60 Could Unlock a Move Toward 113.00

CADJPY is beginning to show a more constructive technical structure after rebounding from the lower boundary of its broader descending channel. The daily chart shows improving bullish pressure, while the 4-hour timeframe is compressing inside a tightening triangle just beneath 111.60. A confirmed break above this level could open the way toward 112.40 and 113.00.

CADJPY Daily Chart Analysis

On the daily chart, CADJPY remains inside a broad descending channel that has guided price lower since the summer highs. However, the latest reaction from the lower boundary of that structure suggests that bearish momentum is beginning to weaken.

The pair found support around the 109.80–110.20 region and has since started to recover, with recent candles producing a sequence of higher lows. The Fractals indicator reinforces this view, as several lower fractals have formed around the recent support area, confirming repeated rejection of lower prices.

Price is now approaching 111.60, which represents the first important horizontal barrier. A sustained move above this level would strengthen the current recovery and expose 112.40.

The next major objective lies at 113.00, where horizontal resistance converges with the upper boundary of the descending channel. This confluence makes 113.00 particularly important: a test of this level would bring CADJPY back to the top of its corrective structure and place the broader downtrend under pressure.

The Bulls Power (13) indicator is also beginning to support the bullish case. The current reading stands near 0.3341, placing the indicator back in positive territory after a period of sustained negative pressure. This shift suggests that buyers are gradually regaining control and adds confirmation to the recovery developing from the channel floor.

Recent daily candles also show that selling pressure has become less aggressive. Instead of extending toward fresh lows, price has stabilised and begun building higher from support, which is consistent with the improving Bulls Power reading.

Key Levels:

• 111.60: Immediate resistance and the first bullish confirmation level.
• 112.40: Secondary resistance and the next upside objective.
• 113.00: Major resistance and upper boundary of the daily descending channel.
• 109.80–110.20: Key support zone that triggered the latest recovery.

CADJPY 4-Hour Chart Analysis

The 4-hour chart provides a clearer view of the short-term setup.

CADJPY is currently trading inside a symmetrical triangle, with a descending resistance line from the September high and a rising support line connecting the higher lows formed since late September.

The structure shows a clear compression in volatility. Buyers continue to step in at progressively higher levels, while sellers are still defending the descending trendline around 111.40–111.60.

The Fractals indicator confirms this tightening structure. Recent lower fractals have formed at increasingly higher levels along the rising trendline, while upper fractals continue to cluster near the descending resistance boundary. This pattern reflects an increasingly balanced market that is approaching a directional breakout.

The latest price action is now pressing directly into the upper boundary of the triangle. A decisive H4 close above 111.60 would be an important technical signal, as it would break both horizontal resistance and the descending trendline at the same time.

Such a breakout would shift attention toward 112.40, followed by 113.00.

The importance of 113.00 is also reinforced by the daily chart, where the same level aligns with the upper boundary of the broader descending channel. This makes it the primary upside target if the H4 compression resolves higher.

CADJPY Bullish Breakout Scenario

The daily and 4-hour charts are beginning to align around a bullish recovery setup.

On the daily timeframe, price has rebounded from the lower boundary of the descending channel, Fractals confirm repeated demand near the recent lows, and Bulls Power has moved back into positive territory. On the 4-hour chart, CADJPY is compressing inside a symmetrical triangle and is now testing its upper boundary.

A sustained break above 111.60 would provide the first confirmation that buyers are taking control. From there, 112.40 would become the next target, followed by the more important 113.00 resistance zone.

For now, the structure is tightening and momentum is improving. The next reaction around 111.60 should determine whether CADJPY remains trapped inside its broader correction or begins a stronger recovery toward the top of the daily channel.

Bullish path: 111.60 breakout → 112.40 → 113.00.