Trade of the Day: EUR/JPY

By: Dima Chernovolov

EUR/JPY recently broke the key resistance level 139.48, which was previously identified by Autochartist. Autochartist rates the Significance of this resistance level at the 5-bar level – which is the result of the five previous price reversals from this price level. EUR/JPY is expected to continue to rise toward the forecast price 139.78.

As can be seen from the daily EUR/JPY chart below – the price earlier reversed up from the support area located between the pivotal support level 138.00 (former support from June), 61.8% Fibonacci correction of the upward impulse from May and the lower daily Bollinger Band. The proximity of this support area adds to the probability EUR/JPY will continue to rise toward the forecast price 139.78.