CAD/JPY continues to rise inside the 4-hour Falling Wedge chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 5-bar level – which is the result of the slow Initial Trend (2 bars), above-average Uniformity (6 bars) and higher Clarity (8 bars). CAD/JPY is expected to rise further inside this Falling Wedge – in line with the earlier upward reversal from the key support area highlighted below.
As can be seen from the daily CAD/JPY chart below, the pair recently reversed up with the daily Hammer from the support area lying between the support level 81.00 and the lower daily Bollinger Band®. The proximity of this support area increases the probability CAD/JPY will continue to rise inside this Falling Wedge.