The CAD/JPY pair is currently exhibiting a strong Bullish structure on the higher timeframes, characterized by a series of higher highs and higher lows. Following a brief healthy correction to the moving average support, price action is now consolidating just below a critical breakout zone.

The technical outlook remains Bullish as long as the current structure holds. We are looking for a definitive candle close above 116.480 to confirm that the buyers have regained full control. This breakout would likely trigger a momentum move toward our primary targets at 117.530 and 118.100. Traders should monitor the RSI for a continued move toward the overbought territory, which would further validate the strength of this trend continuation.