Daily Forex Update: CAD/JPY

By: Dima Chernovolov

CAD/JPY continues to fall inside the Down Channel chart pattern which was previously identified by Autochartist on the one-hour charts. Autochartist measures the Quality of this Down Channel at the 4 bar level – which is the result of the slow Initial Trend (4 bars), lower Uniformity (2 bars) and above-average Clarity (6 bars). CAD/JPY is expected to continue to fall inside this Down Channel – continuing the sharp downward impulse visible on the daily CAD/JPY chart below.

As can be seen from the daily CAD/JPY chart below, this Down Channel is continuing the sharp daily downward impulse which earlier broke through the support zone lying between the support level 82.8 (which reversed the price with the daily Morning Star in November), the support trendline of the daily down channel from December and the 38.2% Fibonacci correction of the upward impulse from November. The strength of the active daily impulse adds to the likelihood CAD/JPY will continue to fall inside this Down Channel.

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