Trade of the Day: CAD/JPY
By: Dima Chernovolov
CAD/JPY continues to rise inside the 4-hour Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 7-bar level – which is the result of the significant Initial Trend and Uniformity (7 bars), and higher Clarity (8 bars). CAD/JPY is expected to rise further inside this Down Channel.
As can be seen from the daily CAD/JPY chart below – the pair earlier reversed up from the support area lying at the intersection of the round support level 90.00 (which has been reversing the pair from January), lower daily Bollinger Band and the 50% Fibonacci correction of the upward impulse 1 from December. The proximity of this support area increases the probability CAD/JPY will continue to rise inside this Down Channel.