By: Dima Chernovolov
CAD/JPY continues to rise inside the daily Triangle chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Triangle at the 5-bar level – which is the result of the slow Initial Trend (4 bars), above-average Uniformity (6 bars) and medium Clarity (rated at the 5 bar level). CAD/JPY is expected to rise further inside this Triangle – in line with the earlier upward reversal from the support area shown below.
As can be seen from the daily CAD/JPY chart below, the price earlier reversed up from the support area located between the powerful support level 77.80(which has been reversing the price from May) , lower daily Bollinger Band and the 50% Fibonacci correction of the upward correction from march. The proximity of this support area adds to the probability CAD/JPY will continue to inside this Triangle.