Daily Forex Update: EUR/JPY

By: Dima Chernovolov

EUR/JPY recently broke the Ascending Triangle chart pattern which was previously identified by Autochartist on the hourly charts. Autochartist rates the quality of this Ascending Triangle at the 6 bar level – which is the result of the slow Initial Trend (one bar), average Uniformity (5 bars) and higher Clarity (7 bars). EUR/JPY is expected to rise to the forecast price 130.23 – in line with the earlier upward reversal from the support area show below.

As can be seen from the daily EUR/JPY chart below, the bottom of this Ascending Triangle formed when the pair reversed up from the combined support area lying between the support level 128.30 (which also reversed the price in June), lower daily Bollinger Band, support trendline from April and the 38.2% Fibonacci correction of the upward price impulse from June. The proximity of this support area adds to the probability EUR/JPY will soon reach the forecast price 130.23.

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