Trade of the Day: CAD/JPY
By: Dima Chernovolov
CAD/JPY continues to fall inside the 30-minute Down Channel chart pattern which was recently identified by Autochartist. Autochartist measures the quality of this Down Channel at the 9-bar level – which reflects the strong Initial Trend (9 bars), significant Uniformity (7 bars) and strong Clarity (8 bars). CAD/JPY is expected to fall further inside this Down Channel – in limned with the earlier breakout of the support area shown below.
As can be seen from the daily CAD/JPY chart below, the price earlier broke the support area lying between the round support level 80.00 and the 38.2% Fibonacci correction of the previous sharp upward impulse from June. This price area is acting as the resistance zone after it was broken. The proximity of this resistance area adds to the probability CAD/JPY will continue to fall inside this Down Channel.