CAD/JPY continues to fall after it recently broke down through the 4-hour Key Support Level 77.015 identified by Autochartist.
The Significance of this Key Level is rated at the 6 bar level – which corresponds to the 6 recent price reversals from this level. This breakdown continues the strong downtrend visible on the weekly CAD/JPY charts and follows the previous daily downward impulse from the long-term downward price channel resistance trendline from the April of 2010. Point A on the chart below was formed when CAD/JPY turned down from the resistance zone lying at the intersection of the 38,2% Fibonacci Retracement of the preceding daily downward price impulse and the support trendline of the weekly upward correction – acting as resistance now after it was broken last month.
CAD/JPY is expected to continue downward movement toward the Forecast Price 76.2235.
The weekly CAD/JPY chart below highlights the technical price levels mentioned above:
