Trade of the Day: CAD/JPY
By: Dima Chernovolov
CAD/JPY continues to rise inside the 4-hour Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 6-bar level – which is the result of the above-average Initial Trend (6 bars), higher Uniformity (7 bars) and significant Clarity (6 bars). CAD/JPY is expected to rise further inside this Down Channel.
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 94.75 (which stopped the sharp downtrend in January) and the lower daily Bollinger Band. The proximity of this support area and the oversold daily Stochastic add to the probability CAD/JPY will continue to rise inside this Down Channel.