By: Dima Chernovolov
CHF/JPY recently broke the 4-hour Down Channel chart pattern was previously identified by Autochartist. Autochartist rates the Quality of this Down Channel at high, 8 bar level – which is the result of the strong Initial Trend (7 bars), average Uniformity (5 bars) and substantial Clarity (8 bars). Autochartist measures the strength of this breakout at the maximum, 10-bar level – which adds to the likelihood the pair will continue sot rise toward the forecast price 114.67.
As can be seen from the daily CHF/JPY chart below, the bottom of this Down Channel formed when the price reversed up with the daily Bullish Engulfing from the combined support zone lying between the key support level 112.70, lower daily Bollinger Band and the 38.2% Fibonacci correction of the upward impulse from April. The proximity of this support area adds to the probability CHF/JPY will continue to rise toward the forecast price 114.67.
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