Trade of the Day: CHF/JPY

By: Dima Chernovolov

CHF/JPY continues to fall inside the hourly Rising Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Rising Wedge at the 3-bar level – which is the result of the slow Initial Trend (1 bar), medium Uniformity (5 bars) and lower Clarity (4 bars). CHF/JPY is expected to rise further inside this Rising Wedge.

As can be seen from the weekly CHF/JPY chart below – the pair earlier broke through the major resistance levels 119.00 and 120.00. The breakout of these resistance levels accelerated the active weekly upward impulse wave from March. The strength of the active impulse wave increases the probability CHF/JPY will continue to rise inside this hourly Rising Wedge.