Trade of the Day: CAD/JPY
By: Dima Chernovolov
CAD/JPY continues to rise inside the 15-minute Rising Wedge chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 6-bar level – which is the result of the below-average Initial Trend (4 bars), medium Uniformity (4 bars) and strong Clarity (9 bars). CAD/JPY expected to rise further inside this Rising Wedge – in line with the earlier upward reversal from the support area highlighted below.
As can be seen from the daily CAD/JPY chart below – the price recently reversed up from the support area lying between the key support level 81.72 (which has been reversing the price from December), 50% Fibonacci correction of the previous uptrend from August and the lower daily Bollinger Band. The proximity of this support area increases the probability CAD/JPY will continue to rise inside this Rising Wedge.