By: Dima Chernovolov
CHF/JPY continues to fall inside the 4-hour Falling Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 7-bar level – which is the result of the slow Initial Trend (4 bars), above-average Uniformity (6 bars) and strong Clarity (7 bars). CHF/JPY expected to fall further inside this Falling Wedge – in line with the earlier breakout reversal from the support zone shown below.
As can be seen from the daily CHF/JPY chart below, the price earlier broke the support zone lying at the intersection of the strong support level 114.30 (which reversed the price earlier this month) and the support trendline from last November. This price zone is acting as resistance area after it was broken. The proximity of this resistance area increases the probability the price will continue to fall inside this Falling Wedge.
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