Trade of the Day: CAD/JPY
By: Dima Chernovolov
CAD/JPY continues to rise inside the 30-minute Rising Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 4-bar level – which is the result of the slow Initial Trend (2 bars), medium Uniformity (5 bars) and lower Clarity (4 bars). CAD/JPY is expected to rise further inside this Rising Wedge.
As can be seen from the daily CAD/JPY chart below – the price earlier reversed up with the daily Hammer from the support area located between the long-term support level 86.00 (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 further inside this Rising Wedge.