Trade of the Day: NZD/JPY

By: Dima Chernovolov

NZD/JPY continues to fall inside the 15-minute Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 8-bar level – which is the result of the powerful Initial Trend (10 bars), medium Uniformity (5 bars) and strong Clarity (8 bars). NZD/JPY is expected to fall further inside this Down Channel.

As can be seen from the daily NZD/JPY chart below – the pair earlier reversed down from the major long-term resistance level 87.00 (which initial stopped the sharp uptrend in March and has since been reversing the pair). The proximity of this strong resistance level increases the probability NZD/JPY will continue to fall inside this Down Channel.