Daily Forex Update: CAD/JPY

By: Dima Chernovolov

CAD/JPY continues to fall inside the 15-minute Falling Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 4-bar level – which is the result of the slow Initial Trend and Uniformity (both rated at the 2 bar level) and strong Clarity (8 bars). CAD/JPY expected to fall further inside this Falling Wedge – in line with the earlier breakout of the key support level shown below.

As can be seen from the daily CAD/JPY chart below, the price earlier broke through key support level 83.30 (former resistance level from May and June). This price level is acting as resistance after it was broken. The proximity of this resistance level and the Momentum indicator being close to the yearly lows both increase the probability the price will continue to fall inside this chart pattern.

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