Trade of the Day: CAD/JPY

By: Dima Chernovolov

CAD/JPY continues to rise inside the hourly Up Channel chart pattern, which was recently identified by Autochartist. Autochartist measures the quality of this Up Channel at the 4-bar level – which reflects the slow Initial Trend and Uniformity (1 and 2 bars), and significant Clarity (7 bars). CAD/JPY is expected to rise further inside this Up Channel.

As can be seen from the daily CAD/JPY chart below – the pair previously reversed up from the support area located between the key support level 105.00 (which also reversed the pair earlier this month) and the 50% Fibonacci correction of the earlier upward impulse from the start of July. The proximity of this support area and the clear daily uptrend increase the probability CAD/JPY will continue to rise inside this Up Channel.