Trade of the Day: CAD/JPY

By: Dima Chernovolov

CAD/JPY recently broke the key resistance level 89.28 which was previously identified by Autochartist on the hourly charts. Autochartist rates the Significance of this resistance level at the 3-bar level – which is the result of the three previous price reversals from this price level. CAD/JPY is expected to continue to rise toward the forecast price 89.82.

As can be seen from the daily CAD/JPY chart below – the price earlier reversed up with the daily Bullish Engulfing from the support area located between the key support level 88.00 (former resistance from September), lower daily Bollinger Band and the 61.8% Fibonacci correction of the upward impulse from September. The proximity of this support area increases the probability CAD/JPY will continue to rise toward the forecast price 89.82.