Trade of the Day: NZD/JPY

By: Dima Chernovolov

NZD/JPY continues to rise inside the hourly Up Channel chart pattern which was identified recently by Autochartist. Autochartist rates the quality of this Up Channel at the 5-bar level – which reflects the below-average Initial Trend (4 bars), medium Uniformity (4 bars) and significant Clarity (7 bars). NZD/JPY is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the major support area shown below.

As can be seen from the daily NZD/JPY chart below, the bottom of this Up Channel formed when the price reversed up from the strong support area lying between the key support level 67.00 (which stopped the sharp downtrend in August) and the lower daily Bollinger Band. The proximity of this support area increases the probability NZD/JPY will continue to rise inside this Up Channel.