By: Dima Chernovolov
CHF/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 6-bar level – which is the result of the slow Initial Trend (1 bar), significant Uniformity (7 bars) and strong Clarity (9 bars). CHF/JPY is expected to fall further inside this Down Channel – in line with the earlier breakout of the support area shown below.
As can be seen from the daily CHF/JPY chart below, the price earlier broke though the support area lying between the key support level 114.00 and the 38.2% Fibonacci correction of the previous extended upward impulse from May. This price area is acting as the resistance area after it was broken. The proximity of this resistance area and increases the probability CHF/JPY will continue to fall inside this Down Channel.
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