Trendline Analysis and Rebound Potential in CAD/JPY

The displayed chart shows the CAD/JPY currency pair on a weekly timeframe with a Heikin Ashi chart. In this analysis, there is a strong upward trendline that has been in place since 2021, currently acting as a dynamic support area. The price is now around the 106.000 level, which is also an important horizontal support zone. From a technical perspective, the price shows potential to rebound from this support area and continue its upward trend.

Identify the main trend—the uptrend remains dominant as the price continues to form higher highs and higher lows overall. Observe the current price structure, where the price is testing a support area reinforced by the ascending trendline. The potential entry area is at the 106.000 level. The upside target is identified around 118.000, based on the nearest resistance visible on the chart.

If the price shows bullish confirmation, such as a reversal candle or increasing volume, the opportunity for a buy entry becomes stronger. However, if the price breaks below the ascending trendline support, a bearish scenario may emerge and should be anticipated.