Daily Forex Update: EUR/JPY

By: Dima Chernovolov

EUR/JPY recently broke the 4-hour Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 8-bar level – which is the result of the strong Initial Trend (10 bars), below-average Uniformity (4 bars) and strong Clarity (8 bars). EUR/JPY is expected to rise toward the forecast price 128.51 – in line with the earlier upward reversal from the major support area shown below.

As can be seen from the weekly EUR/JPY chart below, the bottom of this Down Channel formed when the price reversed up major support area lying between the support level 125.00, lower weekly Bollinger Band and the 50% Fibonacci correction of the previous sharp upward impulse from April of 2017. The proximity of this support zone increases the probability EUR/JPY will continue to rise toward the forecast price 128.51.

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