Daily Forex Update: CAD/JPY

By: Dima Chernovolov

CAD/JPY continues to rise inside the Clear Rising Wedge which was recently identified by Autochartist on the hourly charts. Autochartist rates the Quality of this Rising Wedge at the 6 bar level – which is the result of the slow Initial Trend (3 bars), above-average Uniformity (7 bars) and near-maximum Clarity (9 bars). CAD/JPY is expected to rise inside this chart pattern – continuing the earlier upward reversal from the support area described below.

As can be seen from the daily CAD/JPY chart below, the bottom of this Rising Wedge formed when the price reversed up with the daily Hammer from the support zone lying between the powerful support level 80.30 (former resistance level from September, which also reversed the pair in April) and 61.8% Fibonacci correction of the upward impulse from November. The proximity of this support zone increases the probability CAD/JPY will continue to advance inside this Rising Wedge.

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