Trade of the Day: CAD/JPY

By: Dima Chernovolov

CAD/JPY continues to rise inside the 30-minute Rising Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Rising Wedge at the 5-bar level – which is the result of the slow Initial Trend (1 bar) and strong Uniformity and Clarity (8 bars). CAD/JPY is expected to rise further inside this Rising Wedge – in line with the earlier breakout of the resistance area shown below.

As can be seen from the daily CAD/JPY chart below – the price earlier boke the resistance area located between the resistance level 87.20 and the 61.8% Fibonacci correction of the earlier downward correction from the middle of March. This price area is acting now as the support zone after it was broken. The proximity of this support area and the strength of the active uwpard impulse wave increase the probability CAD/JPY will continue to rise inside this Rising Wedge.