Trade of the Day: CAD/JPY

CAD/JPY continues to fall inside the 30-minute Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the slow Initial Trend (2 bars),strong Uniformity (8 bars) and significant Clarity (7 bars).  CAD/JPY  is expected to fall further inside this Down Channel.

As can be seen from the daily CAD/JPY chart below – the pair earlier reversed down from the strong resistance area located between the major long-term resistance level 109.30 (which has been reversing the price from the end of 2022) and the upper weekly Bollinger Band. The proximity of this resistance area and the overbought weekly Stochastic increase the probability CAD/JPY will continue to fall further inside this Down Channel.