By: Dima Chernovolov
CAD/JPY recently broke the 15-minute Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Triangle at the 6-bar level – which is the result of the slow Initial Trend (4 bars) and average Uniformity and strong Clarity (both rated at the 5 bar level). CAD/JPY is expected to fall further toward the forecast price 82.01 – in line with the earlier breakout of the strong support zone shown below.
As can be seen from the daily CAD/JPY chart below, the price earlier broke through the support zone lying between the key support level 83.00 (which reversed the price at the end of May) and 61.8% Fibonacci retracement of the previous upward correction from March. This price zone is acting as resistance area after it was broken. The proximity of this resistance area adds to the probability CAD/JPY will continue to fall toward the forecast price 82.01.
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