Pullback / Retracement Strategy for CAD/JPY
The complete playbook for running a pullback / retracement setup on CAD/JPY — when it works, when it fails, and how to size your risk.
Reviewed by the Candleread desk · Updated 2026-04-09
The pullback / retracement strategy applied to CAD/JPY typically targets a 1:2–1:4 risk-to-reward ratio with a hold time of 4 hours – 5 days. CAD/JPY is a minor pair with a 1.8-pip spread and 80-pip average daily range, which gives adequate range for most setups. Best timeframes for this combination: H1, H4, D1.
How Pullback / Retracement Works on CAD/JPY
Pullback / Retracement Rules for CAD/JPY
- 1
Step 1
Confirm trend direction on D1 or H4 (higher highs/lows for uptrend)
- 2
Step 2
Wait for pullback to a key level (Fib, MA, S/R)
- 3
Step 3
Look for a rejection candle at the level (pin bar, engulfing)
- 4
Step 4
Enter on the close of the rejection candle
- 5
Step 5
Stop: below the pullback low (long) or above pullback high (short)
- 6
Step 6
Target: recent swing high/low or 2–3R minimum
Best Conditions
When This Setup Fails
Key Numbers
The math for running pullback / retracement on CAD/JPY:
- •Typical R:R: 1:2–1:4
- •Hold time: 4 hours – 5 days
- •Best timeframes: H1, H4, D1
- •CAD/JPY spread: 1.8 pips
- •CAD/JPY daily range: 80 pips
- •Difficulty: beginner
Key takeaways
- ✓Pullback / Retracement on CAD/JPY: 1:2–1:4 R:R, hold time 4 hours – 5 days
- ✓Best timeframes: H1, H4, D1
- ✓CAD/JPY spread (1.8 pips) — factor it into stop distance
- ✓Trade during New York session + Asian session for best conditions
- ✓Risk 1% per trade, always — the calculator does the sizing