Trade of the Day: CAD/JPY
By: Dima Chernovolov
CAD/JPY continues to rise inside the 4-hour Falling Wedge chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 5-bar level – which is the result of the slow Initial Trend (2 bars), above-average Uniformity (6 bars) and higher Clarity (8 bars). CAD/JPY is expected to rise further inside this Falling Wedge – in line with the earlier upward reversal from the key support area highlighted below.
As can be seen from the daily CAD/JPY chart below, the pair recently reversed up with the daily Hammer from the support area lying between the support level 81.00 and the lower daily Bollinger Band. The proximity of this support area increases the probability CAD/JPY will continue to rise inside this Falling Wedge.