2026-03-11 03:01:00
This Loonie pair just busted though a major ceiling but appears to be stalling at another resistance level.
Can it go for a correction to this area of interest?
Check out these Fibonacci retracement levels on the 4-hour time frame!
Elevated Middle East tensions are still keeping crude oil prices strongly supported, along with the commodity-related Canadian dollar.
However, whipsawing price action from the G7 discussion about tapping into emergency oil reserves has led CAD/JPY to stall from its recent run higher.
Is it about to retest the former resistance or ready to resume its climb?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the Canadian dollar and the Japanese yen, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
CAD/JPY hit a roadblock around R1 (117.01) which happens to line up with a major psychological resistance. Should profit-taking continue, the pair could find itself retreating to nearby support zones marked by the Fib retracement tool.
The 38.2% Fib lines up with S1 (115.11) while the 50% level is closer to the area of interest around the 114.50 minor psychological handle, as well as the dynamic support at the moving averages. The 61.8% retracement is near S2 (113.69) and may be the line in the sand for a bullish pullback.
Keep your eyes peeled for reversal candlesticks at any of these levels, as a bounce could allow CAD/JPY to climb back to the swing high or to fresh upside targets close to R2 (117.67).
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
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Today’s chart art zooms in on CAD/JPY’s correction levels. But as any pro will tell you, even the cleanest trend-following setup can fall apart if the trader doesn’t stay disciplined when price starts testing the level.
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Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
