By: Dima Chernovolov
CAD/JPY recently broke the Quality Descending Triangle chart pattern which was recently identified by Autochartist on the 4-hours charts. Autochartist rates the Quality of this Descending Triangle at the 8 bar level – which reflects the average Initial Trend (5 bars) and substantial Uniformity and Clarity (both rated at the 8 bar level). Autochartist measures the strength of this breakout at the maximum 10-bar level, which adds to the probability CAD/JPY will soon reach the forecast price 83.32.
As you can see from the daily CAD/JPY chart below, the breakout of this Descending Triangle is aligned with the sharp weekly downward impulse which started earlier from the powerful resistance zone located between the long-term resistance level 88.70 (which reversed the price in April) and 50% Fibonacci correction of the weekly downward impulse from 2015. The strength of the active downward impulse wave increases the probability CAD/JPY will soon reach the forecast price 83.32.
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