By: Dima Chernovolov
CHF/JPY recently reversed down from the top of the 4-hour Up Channel chart pattern which was recently identified by Autochartist. Autochartist measures the quality of this Up Channel at the 6-bar level – which is the result of the strong Initial Trend (8 bars), lower Uniformity (3 bars) and significant Clarity (7 bars). CHF/JPY is expected to fall further inside this Up Channel – in line with the earlier downward reversal from the powerful resistance area shown below.
As can be seen from the weekly CHF/JPY chart below, the top of this Up Channel formed when the pair reversed down from the resistance area lying between the long-term resistance level 118.00 (which has been reversing the price from the middle of 2017) and the upper weekly Bollinger Band. The proximity of this resistance area and the overbought weekly Stochastic increase the probability CHF/JPY will continue to fall inside this Up Channel.
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