Autochartist recently identified the Flag chart pattern on the daily CAD/JPY charts – as you can see from the following trade opportunity alert for this currency pair. The price is expected to break the lower support trendline of this Flag and to fall further to the target level 92.50 in the next 4 trading days (point A, the last connecting point of the lower support trendline of this Flag). The Stop-Loss for this forecast is set by Autochartist at the close price level 96.15 (point B, the top of this chart pattern). Given the close placement of the stop-loss the sell entry at the current level (95.36) presents an attractive reward to risk ratio of 3,9 (95.36-92.50)/(96.10-95.36). Point B formed when the pair reversed down from the combined resistance zone made out of the breakout level of the preceding sharp daily Up Channel at 96.40 as well as the 50% Fibonacci Retracement of the preceding sharp downward price impulse from the round resistance 100.00 (as you can see on the next chart below).
The following daily CAD/JPY chart displays the aforementioned price levels:
The following daily CAD/JPY chart displays the aforementioned price levels: