Trade of the Day: CAD/JPY

By: Dima Chernovolov

CAD/JPY recently broke the key resistance level 86.20 which was previously identified by Autochartist. Autochartist rates the Significance of this resistance level at the 3-bar level – which is the result of the 3 previous price reversals from this price level. CAD/JPY is expected to continue to rise toward the forecast price 86.83.

As can be seen from the daily CAD/JPY chart below – the pair earlier reversed up with the clearly formed daily Hammer from the support zone lying between the key support level 85.50 (which has been reversing the price from April) and the lower daily Bollinger Band. The proximity of this support area increases the probability CAD/JPY will continue to rise toward the forecast price 86.83.