By: Dima Chernovolov
CAD/JPY continues to fall inside the clear hourly Up Channel chart pattern which was previously identified by Autochartist. Autochartist measures the quality of this Up Channel at the 5-bar level – which is the result of the slower Initial Trend (4 bars), medium Uniformity (5 bars) and higher Clarity (7 bar). CAD/JPY is expected to fall further inside this Up Channel – in line with the earlier downward reversal from the key resistance level below.
As can be seen from the daily CAD/JPY chart below, the top of this Up Channel formed when the price earlier reversed down from the key resistance level 81.90 (former strong support from January and March). The proximity of this resistance level increases the probability CAD/JPY will continue to fall inside this Up Channel.