The pair today broke down through the strong key support level 77.015 identified by Autochartist on the 4-hour charts. Autochartist rates the significance of this at the 6-bar level -- reflecting the fact that the pair recently reversed six times from that level. This breakout continues the dominant downtrend that can be seen on the weekly CAD/JPY charts.
Specifically, this breakout continues the preceding sharp daily downward price thrust from the resistance trend line of the long-term downward price channel from April 2010. The recent price high (point A on the chart below) formed when the pair reversed down from the resistance area made out of the 38,2% Fibonacci retracement of the aforementioned previous daily downward price impulse and the former support trend line of the long-term upward correction -- acting as resistance after having been broken recently. The pair is expected to fall further in the direction of the forecast price of 76.2235.
CAD/JPY High" title="dailyfx 1" width="600" height="245">
The following weekly CAD/JPY chart shows the longer-term picture of this currency pair’s movement:
CAD/JPY" title="CAD/JPY" width="594" height="699">