Trade of the Day: CAD/JPY

CAD/JPY continues to fall inside the 15-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), significant Uniformity (7 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 resistance level 97.75 (which has been reversing the price from January) and the 50% Fibonacci retracement of the previous downward impulse from 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.