Trade of the Day: CAD/JPY
By: Dima Chernovolov
CAD/JPY recently broke the daily Flag chart pattern which was recently identified by Autochartist. Autochartist rates the quality of daily this Flag at the 9-bar level – which is the result of the sharp Initial Trend (10 bars), strong Uniformity (9 bars), significant (8 bars). CAD/JPY is expected to fall toward the forecast price 82.20 – in line with the earlier downward reversal from the key resistance area shown below.
As can be seen from the daily CAD/JPY below, the price earlier reversed down from the key resistance area lying between the pivotal resistance level 84.00 (which has been reversing the price from March), upper daily Bollinger Band and the resistance trendline from November. The proximity of this resistance area adds to the probability CAD/JPY will continue to fall toward the forecast price 82.20.