Trade of the Day: CAD/JPY
By: Dima Chernovolov
CAD/JPY continues to rise inside the hourly Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 5-bar level – which is the result of the slow Initial Trend (1 bar), strong Clarity (8 bars) and significant Uniformity (7 bars). CAD/JPY is expected to rise further inside this Up Channel.
As can be seen from the daily CAD/JPY chart below – the pair earlier reversed up from the support area located between the key support level 89.00, lower daily Bollinger Band and the 50% Fibonacci correction of the upward price impulse from the middle of June. Clear daily uptrend and the proximity of this support area add to the probability CAD/JPY will continue to rise inside this hourly Up Channel.