Daily Forex Update: EUR/JPY

By: Dima Chernovolov

EUR/JPY continues to fall inside the clear daily Falling Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 5-bar level – which is the result of the slow Initial Trend (one bar), above-average Uniformity (6 bars) and higher Clarity (7 bars). EUR/JPY is expected to fall further inside this Falling Wedge – in line with the earlier downward reversal from the key resistance area shown below.

As can be seen from the daily EUR/JPY chart below, price earlier reversed down with the daily Japanese candlesticks reversal pattern Evening Star from the resistance area lying between the key resistance level 133.20 (former support from January), upper daily Bollinger Band and the 50% Fibonacci correction of the downward impulse from the start of February . The proximity of resistance area increases the probability EUR/JPY will continue to fall inside this chart pattern.

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