CAD/JPY recently broke the quality descending triangle chart pattern which was recently identified by Autochartist on the 4-hours charts. Autochartist rates the quality of this descending triangle at the 8 bar level – which reflects the average initial trend (5 bars) and substantial uniformity and clarity (both rated at the 8 bar level). Autochartist measures the strength of this breakout at the maximum 10-bar level, which adds to the probability CAD/JPY will soon reach the forecast price 83.32.
As you can see from the daily CAD/JPY chart below, the breakout of this descending triangle is aligned with the sharp weekly downward impulse which started earlier from the powerful resistance zone located between the long-term resistance level 88.70 (which reversed the price in April) and 50% Fibonacci correction of the weekly downward impulse from 2015. The strength of the active downward impulse wave increases the probability CAD/JPY will soon reach the forecast price 83.32.
