Trade of the Day: CAD/JPY

By: Dima Chernovolov

CAD/JPY continues to rise inside the 30-minute Triangle chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Triangle at the 4-bar level – which is the result of the slower Initial Trend (3 bars), medium Uniformity (5 bars) and lower Clarity (4 bars). CAD/JPY is expected to rise further inside this Triangle.

As can be seen from the daily CAD/JPY chart below – the pair earlier reversed up from the support area located between the key support level 96.10 (which stopped the previous sharp downward impulse in the middle of December) and the lower daily Bollinger Band. The proximity of this support area adds to the probability CAD/JPY will continue to rise inside this Triangle.