Daily Forex Update: CAD/JPY

By: Dima Chernovolov

CAD/JPY continues to fall in the direction of the Key Support level 86.9090 (of the type Approach), which was previously identified by Autochartist on the hourly charts. Autochartist rates the Significance of this Support level at the 4-bar level – which is the result of the four recent price reversals from this price level. CAD/JPY is expected to reach this support level in the coming trading sessions. 

As can be seen from the weekly CAD/JPY chart below – the price earlier reversed down sharply from the strong resistance zone lying at the intersection of the multi-month resistance level 88.70 (which has been reversing the pair from last April) and the 50% Fibonacci correction of the downward impulse from 2015. The proximity of this resistance area increases the probability CAD/JPY will continue to fall toward the key support level 86.9090 tomorrow.

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