Trade of the Day: CAD/JPY
By: Dima Chernovolov
CAD/JPY recently broke the key 30-minute resistance level 89.30 which was previously identified by Autochartist. Autochartist rates the Significance of this support level at the 4-bar level – which is the result of the found previous price reversals from this price level. CAD/JPY is expected to continue to rise toward the forecast price 89.77.
As can be seen from the daily CAD/JPY chart below – the pair earlier reversed up with the daily bullish Engulfing from the support area located between the key support level 88.32 (former monthly high from April), lower daily Bollinger Band and the 50% Fibonacci correction of the upward impulse form April. The proximity of this support area increases the probability CAD/JPY will continue to rise toward the forecast price 89.77.