Trade of the Day: CAD/JPY

By: Dima Chernovolov

CAD/JPY continues to fall inside the 15-minute Triangle chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Triangle at the 4-bar level – which is the result of the slow Initial Trend (2 bars), above-average Uniformity and Clarity (6 bars). CAD/JPY is expected to fall further inside this Triangle.

As can be seen from the daily CAD/JPY chart below – the price earlier reversed down from the resistance zone located between the long-term resistance level 91.20 (which stopped the sharp uptrend in June) and the upper daily Bollinger Bad. The proximity of this resistance zone and the overbought daily Stochastic increase the probability CAD/JPY will continue to fall inside this Triangle.

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