Daily Forex Update: CAD/JPY

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.

To subscribe to the e-mail alerts feature is quick and easy. Log into the Autochartist platform, click on ‘Alerts & Messaging’, enter your email address, select the market you want covered, select your language, and the time you want to get your report, and you’re done! You will now receive a quick morning technical outlook of the markets.

For further information on this and other Autochartist products visit www.autochartist.com