Trade of the Day: CAD/JPY

CAD/JPY recently broke the 4-hour key support level 97.92, which was recently identified by Autochartist. Autochartist rates the significance of this support level at the 3-bar level – which is the result of the three previous reversals from this price level. CAD/JPY is expected to fall toward the forecast price 96.44.

As can be seen from the daily CAD/JPY chart below – the pair earlier reversed down sharply from the resistance area located between the resistance level 99.00 (former support from the start of December) and the 38.2% Fibonacci correction of the previous downward impulse from November. The proximity of this resistance area and the clear daily downtrend increase the probability CAD/JPY will continue to fall toward the forecast price 96.44.