Trade of the Day: CAD/JPY

By: Dima Chernovolov

CAD/JPY today broke the 15-minute Double Bottom chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Double Bottom at the 7-bar level – which reflects the strong Initial Trend (8 bars), lower Uniformity (3 bars) and significant Clarity (8 bars). CAD/JPY is expected to rise toward the forecast price 107.13.

As can be seen from the daily CAD/JPY chart below – the pair earlier broke above the resistance level 106.70 (previous monthly high from August). This price level is acting as the support after it was broken. The proximity of this support level and the strong daily uptrend increase the probability CAD/JPY will continue to rise toward the forecast price 107.13.