By: Dima Chernovolov
CAD/JPY recently broke the 30-minute Ascending Triangle chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Ascending Triangle at the 5-bar level – which is the result of the slow Initial Trend (2 bars), above-average Uniformity (6 bars) and lower Clarity (4 bars). CAD/JPY is expected to rise toward the forecast price 91.03.
As can be seen from the daily CAD/JPY chart below – the price earlier reversed up from the support zone set between the strong support level 89.65 (which has been reversing the pair from January), lower daily Bollinger Band and the 50% Fibonacci correction of the upward impulse from December. The proximity of this support zone adds to the probability CAD/JPY will continue to rise toward the forecast price 91.03.