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CAD/JPY Finishes Forming Symmetrical Triangle on Daily

May 3, 2020 (Last updated on May 6, 2020) by

The Canadian dollar is currently going through difficult times. Starting from the rapid fall in February that followed a drop in oil prices, the loonie traded in strong downtrend against the Japanese yen through March 9. Then, CAD/JPY has entered a consolidation phase in a form of a symmetrical triangle that is still ongoing. The consolidation seems to be nearing its end now. Considering the previous trend’s direction, the most likely scenario on this chart is a continuation of a decline.

You can see the borders of the triangle as the yellow lines on the chart screenshot below. The cyan line is where my entry level is (at 10% of the triangle’s base width below the lower border). The green line is where my take-profit level will be in case of a successful breakout; it is located at 100% of the triangle’s base width below the lower border. I will set my stop-loss to the triangle’s highest point (78.463). As this is a trend continuation pattern, I will ignore any bullish breakouts. You can click on the image below to see a full-size chart:

CAD/JPY - Symmetrical Triangle Pattern on Daily Chart as of 2020-05-03

I have built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this CAD/JPY pattern. You can trade it using my free Chart Pattern Helper EA.

Update 2020-05-06 12:14 GMT: CAD/JPY has broken through my 75.419 entry level half an hour ago. The stop-loss is set to 78.463, and the take-profit is at 71.466 (subject to updates):

CAD/JPY - Symmetrical Triangle Pattern on Daily Chart as of 2020-05-06 - Post-Entry Screenshot

If you have any questions or comments regarding this symmetrical triangle on the CAD/JPY chart, please feel free to submit them via the form below.

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