Trade of the Day: CAD/JPY

By: Dima Chernovolov

CAD/JPY continues to fall inside the 60-minute Falling Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 3-bar level – which is the result of the slow Initial Trend (3 bars), above-average Uniformity (6 bars) and lower Clarity (1 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 key resistance level 98.45 (which has been reversing the price from the start of January). The proximity of this  resistance level and the clear daily downtrend increase the probability CAD/JPY will continue to fall inside this Falling Wedge.