Trade of the Day: CAD/JPY

By: Dima Chernovolov

CAD/JPY continues to fall inside the 30-minute Falling Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 5-bar level – which is the result of the slow Initial Trend (1 bar), strong Uniformity (8 bars) and above-average Clarity (6 bars). CAD/JPY is expected to fall further inside this Falling Wedge.

As can be seen from the daily CAD/JPY chart below – the pair earlier reversed down from the resistance area located between the pivotal level 99.40 (former strong support from the start of December), 20-day moving average and the 61.8% Fibonacci correction of the downward impulse from the start of December. The proximity of this resistance area and the clear daily downtrend increase the probability CAD/JPY will continue to fall inside this Falling Wedge.