Daily Forex Update: EUR/JPY
By: Dima Chernovolov
EUR/JPY continues to rise inside the clear Down Channel chart pattern which was previously identified by Autochartist on the 4-hour charts. Autochartist rates the quality of this Down Channel at the 6-bar level – which reflects the significant Initial Trend (7 bars), below-average Uniformity (4 bars) and higher Clarity (8 bars). The bottom of this Down Channel formed when EUR/JPY reversed up from the strong support area shown below.
As can be seen from the daily EUR/JPY chart below, the bottom of this Down Channel formed when the pair reversed up from the support zone lying between the key support level 128.30, lower daily Bollinger Band, 50-day moving average and the 38.2% Fibonacci correction of the upward impulse from June. The proximity of this support zone heightens the probability EUR/JPY will continue to rise inside this Down Channel.
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