Daily Forex Update: CAD/JPY
By: Dima Chernovolov
CAD/JPY continues to rise inside the clear 4-hour Up Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which reflects the strong Initial Trend (7 bars), lower Uniformity (3 bars) and high Clarity (8 bars). CAD/JPY is expected to rise further inside this Up Channel – in line with the the eatrlier breakout of the resistnace area shown below.
As can be seen from the daily CAD/JPY chart below, the price earlier broke through the resistnace area located between the pivotal resistnace level 86.70 (top of the previous daily Shooting Star from last month) and the 38.2% Fibonacci correction of the previous sharp downward correction from the start of October. This price area is acting as a strong support area after it was broken. The proximity of this support area increases the probability CAD/JPY will continue to rise inside this Up Channel
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