Trade of the Day: CAD/JPY

By: Dima Chernovolov

CAD/JPY recently broke the key resistance level 98.22, which was earlier identified by Autochartist. Autochartist rates the Significance of this resistance level at the 3-bar level – which is the result of the three recent reversals from this price level. CAD/JPY is expected to continue to rise toward the forecast price 98.53.

As can be seen from the daily CAD/JPY chart below – the price earlier reversed up from the support area located between the key support level 97.00 and the upper trendline of the recently broke wide up channel from last year (acting as support after it was broken) The proximity of this support area and the strength of the active upward impulse increase the probability CAD/JPY will continue to rise toward the forecast price 98.53.