Trade of the Day: EUR/JPY

EUR/JPY continues to fall toward the key support level 148.77, which was recently identified by Autochartist. Autochartist rates the significance of this support level at the 3-bar level – which is the result of the 3 earlier reversals from this price level. EUR/JPY is expected to continue to fall toward the support level 148.77.

As can be seen from the daily EUR/JPY chart below – the pair earlier reversed down with the daily Shooting Star from the key resistance level 151.00 (which stopped the sharp trend in May), intersecting with the upper daily Bollinger Band. The proximity of the resistance level 151.00 and the overbought daily Stochastic increase the probability EUR/JPY will continue to fall toward the support level 148.77.