Trade of the Day: CAD/JPY

By: Dima Chernovolov

CAD/JPY recently broke the hourly Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which is the result of the strong Initial Trend (8 bars), lower Uniformity (3 bars) and strong Clarity (7 bars). CAD/JPY is expected to fall toward the forecast price 87.95.

As can be seen from the daily CAD/JPY chart below – the price earlier reversed down from the resistance area located between the key resistance level 88.40 (former monthly high from August) , upper daily Bollinger Band and the 61.8% Fibonacci correction of the downward impulse from June. The proximity of this resistance area increases the probability CAD/JPY will continue to fall toward the forecast price 87.95.