Trade of the Day: USD/JPY

By: Dima Chernovolov

USD/JPY recently broke the hourly Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Triangle at the 5-bar level – which reflects the slow Initial Trend (2 bars), average Uniformity (5 bars) and strong Clarity (9 bars).  USD/JPY is expected to rise toward the forecast price 107,97 – in line with the earlier breakout of the resistance area shown below.

As can be seen from the daily USD/JPY chart below – the pair recently broke the resistance area lying between the resistance 107.60 (top of the previous minor correction from the middle of June) and the 38,2% Fibonacci correction of the earlier downward wave from the start of June. This price area is acting as the support zone after it was broken. The proximity of this support zone adds to the probability USD/JPY will continue to rise toward the forecast price 107,97.