CADJPY Forming Ascending Trendline

CADJPY is currently trading around 105.50 after breaking below its long-term ascending trendline on the daily chart. This bearish breakdown signals potential continuation toward lower levels, with sellers gaining momentum after several failed attempts to sustain above 107.00. The rejection at higher levels indicates exhaustion from buyers, leaving room for the pair to retrace deeper toward the 102.00–101.00 support zone in the coming weeks.

From a fundamental angle, the Canadian dollar is under pressure as oil prices face renewed volatility due to uncertain global demand and fluctuating supply dynamics. At the same time, the Japanese yen is drawing safe-haven demand, especially as global investors remain cautious ahead of central bank guidance. With the Bank of Japan signaling a gradual shift from ultra-loose policy and the Bank of Canada holding a cautious stance due to softer economic data, the yen has an edge in the current risk environment.

Technically, the clean break of the ascending trendline confirms a potential trend reversal, and the bearish momentum is expected to strengthen if the pair stays below 106.00. Sellers will be eyeing the 103.50 and 101.00 zones as profit targets, while any pullback toward 106.80–107.30 is likely to attract fresh supply.

Traders should remain alert to upcoming Canadian employment and inflation data, as well as BOJ policy remarks, which could bring sharp volatility. For now, downside setups remain favorable while price action holds below the broken trendline, offering solid profit opportunities toward key support levels.