Trade of the Day: CAD/JPY

By: Dima Chernovolov

CAD/JPY continues to fall inside the hourly Rising Wedge chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of Rising Wedge at the 4bar level – which is the result of the medium Initial Trend (5 bars) and lower Uniformity higher Clarity (4 bars). CAD/JPY is expected to fall further inside this Rising Wedge – in line with the earlier downward reversal from the resistance area shown below.

As can be seen from CAD/JPY chart below, the top of this Rising Wedge formed when the price reversed down from the strong resistance area lying between the key resistance level 82.10 (which has been reversing the price from the start of December) and the upper daily Bollinger Band. The proximity of this resistance adds to the probability CAD/JPY will continue to fall inside this Rising Wedge.