CADJPY: Bearish Drop to 113.80?Canadian Dollar vs. Japanese YenFX:CADJPYMaster_HunterCADJPY is eyeing a bearish reversal on the 4-hour chart, with price testing a strong resistance zone near the 0.786 Fibonacci level and cumulative short liquidation area after recent recovery, converging with a potential entry zone that could trigger downside momentum if sellers defend amid volatility. This setup suggests a solid pullback opportunity toward lower support levels with approximately 1:3 risk-reward.🔥 Entry between 116.60–116.90 (entry from current price with proper risk management is recommended). Target at 113.80. Set a stop loss at a daily close above 117.55, yielding a risk-reward ratio of approximately 1:3. Monitor for confirmation via a bearish candle close below entry with rising volume, leveraging the pair’s weakness near resistance.🌟 Fundamentally, CADJPY is trading around 116.30 in late July 2026. For the Japanese Yen, the most important event this week is the Bank of Japan Interest Rate Decision and Quarterly Outlook Report (July 31), where any hawkish signals on further rate hikes would strengthen JPY and support downside in the pair. For the Canadian Dollar, the key release is Canada GDP (July 31), where stronger-than-expected growth would support CAD, while weaker data could limit upside pressure. 💡 📝 Trade Setup 🎯 Entry (Short): 116.60 – 116.90 (Entry from current price is acceptable with proper position sizing and disciplined risk management.) 🎯 Target: 113.80 ❌ Stop Loss: • Daily candle close above 117.55 📈 Risk-to-Reward: Approximately 1:3 💡 Will sellers defend the 116.60–116.90 resistance zone and drive CADJPY toward 113.80, or will buyers break above 117.55 and invalidate the bearish setup? 👇