If CAD/JPY breaks above the ¥111.81 baseline, ¥112.59 will be the upside target. Conversely, a break below ¥110.17 could push it down to ¥109.39.
The pair has rebounded from the late-September low of ¥110.17, suggesting that the short-term decline has run its course. If it can break above ¥111.81, ¥112.59 is expected to come into focus as the upside target. The focus will be on whether the move can continue to consistently exceed the high of ¥111.52.
If the trend strengthens further, a test of around ¥112.93 is expected. On the downside, a break below the ¥110 level could send it toward previous low levels such as ¥109.57 and ¥101.26.
As a secondary scenario, a move below the 30 September low of ¥110.17 could lead to a test of ¥109.39, representing a 50% retracement from this year's high of ¥117.52.
In conclusion, whether the pair can exceed ¥111.81 and whether it breaks below ¥110.17 are expected to have a significant impact on the subsequent direction.