CADJPY Flashback: Pair Progressing Toward Potential Wave 5Mar 10, 2026

Back on February 25th, in our previous analysis “CADJPY Progressing Potential Wave 5 as Wave 4 Support Holds,” we highlighted the possibility that the pair was completing a wave 4 correction near the 111 support zone, with expectations for a continuation higher into wave 5 if buyers defended that area. CLICK HERE

Since then, CADJPY has continued to respect the broader bullish structure and remains supported by the medium-term uptrend that has been developing since the April 2025 lows.

Looking at the bigger picture, CADJPY has been trading higher for roughly the last six months and appears to be unfolding a three-wave ABC recovery within wave (D) from the April 2025 lows. Because of this structure, the upside may be somewhat limited in the bigger picture. The current advance can be interpreted as part of wave C, which itself is likely forming a five-wave impulsive move. At the moment, price action suggests that the pair may be progressing within wave 5 of that impulse, meaning the recovery rally could be approaching its later stages.

Alternatively, the current move can also be viewed as the final stages of wave 5 of wave III within a larger impulsive structure.Even though the labeling differs slightly, both scenarios point to a similar conclusion:
the bullish momentum may soon start to slow.

If this interpretation is correct, traders should be aware of the potential for a larger three-wave corrective pullback once the current bullish sequence completes. In that case, CADJPY could retrace part of the recent advance, with the 111 area remaining an important support zone to monitor in the coming weeks.