Trade of the Day: CAD/JPY

By: Dima Chernovolov

CAD/JPY continues to fall inside the 15-minute Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 6-bar level – which is the result of the slow Initial Trend (1 bar), strong Clarity (8 bars) and near-maximum Uniformity (9 bars). CAD/JPY is expected to fall further inside this Down Channel.

As can be seen from the daily CAD/JPY chart below – the pair earlier reversed down from the resistance area located between the round resistance level 90.00 (former support from the start of June) and the 61.8% Fibonacci correction of the downward impulse from the start of June. The proximity of this resistance area increases the probability CAD/JPY will continue to fall inside this Down Channel.