Trade of the Day: EUR/JPY

By: Dima Chernovolov

EUR/JPY continues to rise inside the daily Flag chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Flag at the 9-bar level – which is the result of the sharp Initial Trend (10 bars), above-average Uniformity (7 bars) and near-maximum Clarity (9 bars). EUR/JPY is expected to fall further inside this Flag.

As can be seen from the daily EUR/JPY chart below – the pair earlier reversed down from the key resistance level 147.61 (which stopped the price earlier this month) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability EUR/JPY will continue to fall inside this Flag.