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Elliott wave view points to CADJPY rebound toward 113.5-114
The analysis says CADJPY reversed sharply after topping near 117.52, dropping more than 500 pips to the 110.50 area, and now expects a corrective bounce before the next downswing.
Action Forex revisits an earlier technical setup on CADJPY from 07.29.2026, describing an Elliott Wave count that suggested a primary corrective pattern was nearing completion. The forecast at the time targeted a significant high in the 117.52 region, framed as a major Fibonacci resistance zone where bulls could take profits and bears could re-enter.
According to the analysis, CADJPY capped its upside near that projected peak area and then reversed aggressively, completing wave ((v)) of C of (B) just below the 116.49 invalidation level. The sell-off pushed the pair more than 500 pips lower, reaching the 110.50 zone to complete wave 1, with the pair later described as trading around 112.02.
Looking ahead, the post calls for wave 2 to form a corrective three-wave bounce, labeled as ((a)), ((b)), and ((c)), toward 113.50 to 114.00. After the corrective rally is complete, the analysis expects the higher-degree downtrend to resume, extending the bearish sequence.