Daily Forex Update: CAD/JPY

By: Dima Chernovolov

CAD/JPY continues to rise inside the well-formed Up Channel chart pattern was recently identified by Autochartist o the 30-minute. Autochartist rates the Quality of this Up Channel at the 5-bar level – which is the result of the low Initial Trend (one bar), above-average Uniformity (7 bars) and significant Clarity (8 bars). CAD/JPY is expected to rise further inside this Up Channel – in line with the earlier breakout of the resistance zone described below.

As can be seen from the daily CAD/JPY chart below, the price earlier broke though the resistance zone lying between the pivotal resistance level 83.30 (which has been reversing the price from the start April) and the 38.2% Fibonacci correction of the downward impulse from December. This price zone is acting as support area after it was broken. The proximity of this support area heightens the probability CAD/JPY will continue to rise inside this Up Channel.

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