Trade of the Day: CAD/JPY

By: Dima Chernovolov

CAD/JPY continues to rise inside the daily Falling Wedge chart pattern, which was previously 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), significant Uniformity (7 bars) and near-maximum Clarity (9 bars). CAD/JPY is expected to rise further inside this Falling Wedge.

As can be seen from the daily CAD/JPY chart below – the price earlier reversed up from the key support level 88.00 (former resistance from September, which has been reversing the pair from the start of December) standing near the lower daily Bollinger Band and the 61.8% Fibonacci correction of the upward impulse from September. The proximity of these support levels adds the probability CAD/JPY will continue rise inside this Falling Wedge.