Trade of the Day: CAD/JPY

By: Dima Chernovolov

CAD/JPY continues to fall inside the 15-minute Falling Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 6-bar level – which is the result of the slow Initial Trend (2 bars), above-average Uniformity (6 bars) and strong Clarity (9 bars). CAD/JPY is expected to fall further inside this chart pattern.

As can be seen from the weekly CAD/JPY chart below – the price earlier reversed down from the powerful resistance zone located between the long-term resistance level 91.7 (former multi-year high from 2017) and the upper monthly Bollinger band. The proximity of this resistance zone increases the probability CAD/JPY will continue to o fall inside this Falling Wedge.